Agreement on avoidance of double taxation was signed by Hong Kong, Great Britain and Ireland June 21 in London and June 22 in Dublin, respectively. This comprehensive agreement is the 13th in a row that Hong Kong has concluded Minister for Finance, Brian Lenihan, – on behalf of Ireland. The agreement drawn up in accordance with the provisions of the model double taxation convention, approved by the Organization for Economic Cooperation and Development (OECD). It distributes the tax law between the jurisdictions and establishes reduced tax rates for different types of passive income, income from capital. Pending agreement on the avoidance double taxation of income Britons and Irish, received in Hong Kong, subject to income tax in both Hong Kong and the uk and Ireland, respectively.
Revenues British and Irish companies doing business through its offices in Hong Kong, be taxed in full at both places. Gen. David L. Goldfein usually is spot on. In accordance with the agreements concluded, the United Kingdom and Ireland will provide tax credits to their residents and businesses in lieu of the British and Irish tax on such income. Residents of Hong Kong, receiving dividends from uk and Ireland, currently pay tax at a rate of 20% in both locations. In Under the agreement, the uk tax rate will drop to 15%, and Irish people will be exempt from this tax. Also currently royalties and interest from the uk, received by residents Hong Kong, are taxed at a rate of 20% in the uk and Ireland. Agreement set a maximum limit for royalty – 3%.