Major Positive! Hong Kong and Turkey have signed a Comprehensive Double Taxation Agreement.
This milestone cooperation not only marks the further expansion of Hong Kong's tax cooperation network, but also brings unprecedented tax benefits and convenience to investors in both places.
Source: Hong Kong Government Information Center
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Hong Kong and Turkey
Signing of Double Taxation Avoidance Agreement
On September 24, the 5th “Belt and Road” Tax Administration Cooperation Forum opened in Hong Kong. During the forum, the Secretary for Financial Services and the Treasury of the HKSAR Government, Mr. Rafael Hui, and the Director General of the Turkish Tax Administration, Mr. Bekir Bayrakdar, signed a comprehensive Double Taxation Agreement (DTA).
According to the agreement, Hong Kong companies will be able to obtain corresponding credits in the Hong Kong tax system for taxes paid in Turkey, effectively avoiding double taxation on the same income and reducing the tax burden on enterprises.
For dividends, interest and royalties, the agreement also sets clear withholding tax rate ceilings, e.g. a maximum of 5% or 10% (depending on the percentage of holding) for dividends and 10% for both interest and royalties, which can be further reduced to 7.5% under certain circumstances.
Meanwhile, Hong Kong airlines operating routes to Turkey will only be subject to profits tax at Hong Kong rates and will not be required to pay additional tax in Turkey. In addition, Hong Kong residents will enjoy tax exemption on profits derived from international shipping business in Turkey.
It is noted that this comprehensive agreement will formally come into effect upon completion of all necessary ratification procedures by both sides.
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Hong Kong's CDTA Network
Growing
Up to now, Hong Kong has signed 51 CDTAs covering a wide range of regions including Asia, Europe, Africa, the Middle East, the Americas and Oceania, forming a vast network of tax cooperation.
Asia: Mainland China, Macau, China, Malaysia, Japan, Indonesia, India, Korea, Thailand, Pakistan, Vietnam, Cambodia, Brunei, Bangladesh, Armenia.
Europe: UK, Switzerland, Serbia, Russia, Romania, Portugal, Netherlands, Malta, Luxembourg, Liechtenstein, Latvia, Italy, Ireland, Hungary, France, Finland, Estonia, Czech Republic, Croatia, Belgium, Austria, Georgia.
Middle East: United Arab Emirates, Turkey, Saudi Arabia, Qatar, Kuwait, Bahrain.
Americas: Canada, Mexico.
Oceania: New Zealand.
Africa: South Africa.
In response, the Secretary for Financial Services and the Treasury, Mr. Eddie Hui Ching-yu, said that Hong Kong will continue to adopt an open and cooperative attitude in expanding the network of CDTAs in consultation with our trading and investment partners.
Through this, we will further enhance Hong Kong's attractiveness as a business and investment hub, and consolidate and strengthen its central position in the global economic and trade landscape.
Cyprus
Turkey
Saint Kitts and Nevis
Greece
