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. India, Hong Kong Sign Double Tax Deal

India, Hong Kong Sign Double Tax Deal

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

20 March 2018


Hong Kong and India on March 19 signed an agreement to avoid double taxation and limit withholding tax rates on passive income at source.

The DTA caps withholding tax on dividends at five percent, and withholding tax on royalty and interest income to ten percent. In the absence of the agreement, interest income sourced from India is subject to a 20 percent tax rate.

Further, Hong Kong airlines operating flights to India will be taxed at Hong Kong's corporation tax rate, and will not be taxed in India. Profits from international shipping transport earned by Hong Kong residents arising in India and subject to tax there will enjoy 50 percent reduction in tax in India.

The agreement provides that any Indian tax paid by Hong Kong companies will be allowed as a credit against the tax payable in Hong Kong on the same profits, subject to the provisions of the tax laws of Hong Kong. Likewise, for Indian companies, the tax paid in Hong Kong will be allowed as a deduction from the tax payable on the same income in India.

The agreement also includes provisions for the exchange of tax information.

TAGS: tax | tax information exchange agreement (TIEA) | double tax agreement (DTA) | India | interest | law | tax rates | withholding tax | Hong Kong | dividends

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 »