Agreement between Hong Kong and Russia for the avoidance of double taxation

HONG KONG
Hong Kong

The agreement was signed in January 2016. It came into force in Hong Kong on July 29, 2016, after the completion of ratification procedures on both sides. It will be in effect in Hong Kong for any year of assessment beginning on or after April 1, 2017.

香港和俄罗斯于今年一月签订该协定。该协定在双方完成有关的批准程序后,已于二零一六年七月二十九日生效。协定对就二零一七年四月一日或之后开始的任何课税年度的香港税项具有效力。

An important advantage of the Agreement is that it will enhance Hong Kong’s position as an international investment hub, making Hong Kong a gateway for the flow of capital between Russia and Mainland China.

Under the agreement, Russia’s withholding tax rate on royalties, currently at 20% (in the case of companies) or 30% (in the case of individuals), will be capped at 3%. Russia’s dividend withholding tax rate on Hong Kong residents will be reduced from the current rate of 15% to 5% or 10%, depending on the percentage of their shareholdings.

Each side is required to give written notice to the other of the completion of the procedures required by its law to give effect to the Russia Hong Kong Double Tax Agreement.

Click here to see the text of the agreement

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