Hong Kong-Pakistan tax treaty comes into force
Agreements came into force on Friday after the completion of ratification procedures on both sides
PHOTO: REUTERS
HONG KONG:
The Comprehensive Avoidance of Double Taxation Agreements with Latvia and Pakistan have entered into force, a spokesperson for China's Hong Kong Special Administrative Region government said here on Friday.
The agreements with Latvia and Pakistan were signed in April 2016 and February 2017, respectively. The two agreements came into force on Friday, after the completion of ratification procedures on both sides.
They will be in effect in Hong Kong for any year of assessment beginning on or after April 1, 2018.
Pakistan, Hong Kong: Pact signed to avoid double taxation
Earlier in February, Pakistan and Hong Kong signed a pact on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. The agreement was signed by Pakistan’s Ambassador to China Masood Khalid and the Secretary for Financial Services and the Treasury, Professor K C Chan.
Under the agreement, double taxation will be avoided in any Pakistani tax paid by Hong Kong companies and 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 Pakistani companies, the tax they pay in Hong Kong will be allowed as a deduction from the tax payable on the same income in Pakistan.
The Comprehensive Avoidance of Double Taxation Agreements with Latvia and Pakistan have entered into force, a spokesperson for China's Hong Kong Special Administrative Region government said here on Friday.
The agreements with Latvia and Pakistan were signed in April 2016 and February 2017, respectively. The two agreements came into force on Friday, after the completion of ratification procedures on both sides.
They will be in effect in Hong Kong for any year of assessment beginning on or after April 1, 2018.
Pakistan, Hong Kong: Pact signed to avoid double taxation
Earlier in February, Pakistan and Hong Kong signed a pact on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. The agreement was signed by Pakistan’s Ambassador to China Masood Khalid and the Secretary for Financial Services and the Treasury, Professor K C Chan.
Under the agreement, double taxation will be avoided in any Pakistani tax paid by Hong Kong companies and 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 Pakistani companies, the tax they pay in Hong Kong will be allowed as a deduction from the tax payable on the same income in Pakistan.