CHINA China's Hong Kong signs tax pact with Georgia to avoid double taxation

CHINA

China's Hong Kong signs tax pact with Georgia to avoid double taxation

Xinhua

15:45, October 05, 2020

HONG KONG, Oct. 5 (Xinhua) -- China's Hong Kong Special Administrative Region (HKSAR) government signed a comprehensive avoidance of double taxation agreement (CDTA) with Georgia on Monday.

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File photo: CFP

The CDTA will help investors better assess their potential tax liabilities from cross-border economic activities, thereby promoting economic and trade connections, the HKSAR government said.

The CDTA is the 45th of such agreement that the HKSAR has concluded with its trade partners.

Under the agreement, double taxation will be avoided as any tax paid in Georgia by Hong Kong companies will be allowed as a credit against the tax payable in Hong Kong, and vice versa.

Besides, Georgia's withholding tax rates for Hong Kong residents on interest and royalties will be capped at 5 percent, and profits from international shipping transport earned by Hong Kong residents arising in Georgia will not be taxed in Georgia.

This CDTA will come into force after being approved by related authorities of both sides.

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