CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Hong Kong Ready For DTA Residency Applications

Hong Kong Ready For DTA Residency Applications

by Mary Swire, Tax-News.com, Hong Kong

16 June 2016


Hong Kong's Inland Revenue Department (IRD) has confirmed that revised application forms for a certificate of Hong Kong resident status, in respect of the double taxation agreement (DTA) between Mainland China and Hong Kong, will apply from June 20, 2016.

The DTA's fourth protocol, which was signed last year, contained amendments to support the tax administration of cross-border equity investments and investment funds, and to give certainty to their tax arrangements.

In particular, under the fourth protocol, gains derived by a Hong Kong resident from the sale and purchase of shares in a Mainland-listed company is taxable only in Hong Kong. This provision is applicable, for example, to gains derived by a Hong Kong resident from the sale and purchase of A shares listed on the Shanghai Stock Exchange under the Shanghai-Hong Kong Stock Connect, and to those investment funds qualifying for Hong Kong resident status.

To streamline the implementation of the amendments, the Mainland and Hong Kong exchanged notes on March 16 and April 15, 2016, agreeing, for example, that a Certificate of Resident Status issued by the IRD to a Hong Kong resident for a particular calendar year serves as proof of their Hong Kong resident status for that calendar year and the two succeeding calendar years.

Therefore, in order to claim tax benefits under the DTA in the Mainland, it would generally not be necessary for a person to apply for a certificate of Hong Kong resident status for the two succeeding calendar years, if a person has already been issued with a Certificate of Resident Status for a particular calendar year.

The new administrative arrangement is effective as from April 15, 2016, and applies to all Certificates of Resident Status issued by the IRD in respect of the amendments, including those issued before that date.

TAGS: compliance | tax | investment | double tax agreement (DTA) | tax compliance | law | investment funds | equity investment | China | agreements | Hong Kong | regulation

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »