Hong Kong's fifth comprehensive agreement for the avoidance of double taxation - this one with Vietnam - was gazetted on Thursday, April 30, 2009.
Under the agreement, any Hong Kong income tax paid by Vietnam residents or companies will be allowed as a credit against any tax payable in respect of the same incomes in Vietnam.
The withholding tax on royalties derived in Vietnam will be capped at 7% where payments are made for the use of patent, design or model, plan, secret formula or process.
The withholding tax on interest derived in Vietnam will be reduced from the current rate of 10% to nil if the recipient is the Hong Kong Government, the Hong Kong Monetary Authority or other mutually agreed recognized institutions.
Profits from international shipping transport Hong Kong residents earn that arise in Vietnam will enjoy full tax exemption.
Hong Kong airlines operating flights to Vietnam will be taxed at the much lower corporate tax rate of 16.5% in Hong Kong instead of Vietnam's 25% corporate tax rate.
The order will be tabled in the Legislative Council on May 6 for negative vetting. The agreement will take effect only after both sides have completed their ratification procedures.
.
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment