Comprehensive Avoidance of Double Taxation Agreement

Double taxation generally refers to the imposition of comparable taxes by more than one jurisdiction in respect of the same source of income. The international community generally recognises that double taxation hinders the exchange of goods and services as well as movements of capital, technology and human resources, and undermines the development of economic relations between economies.

A comprehensive avoidance of double taxation agreement ("CDTA") helps minimise double taxation by setting out the allocation of taxing rights between two jurisdictions and providing relief on tax rates on different types of income. A CDTA helps investors better assess their potential tax liabilities on economic activities, and provides an added incentive for overseas companies to do business in Hong Kong, and likewise, for Hong Kong companies to do business overseas. The Government recognises the above merits of concluding CDTAs with Hong Kong’s trading and investment partners. Therefore, it is the Government’s policy to establish a network of CDTAs with the major trading and investment partners of Hong Kong, as well as emerging economies with which we see potential for growth in bilateral trade and investment.

As at March 2024, Hong Kong has signed CDTAs with 49 jurisdictions and is in negotiations with 16 jurisdictions.

• Comprehensive Double Taxation Agreements concluded
• Negotiations in Progress