Hong Kong and Belarus have signed a comprehensive agreement for the avoidance of double taxation, signifying the Government’s sustained efforts in expanding Hong Kong’s tax agreement network, in particular with economies along the Belt & Road.
The agreement sets out the allocation of taxing rights between the two jurisdictions which will help investors better assess their potential tax liabilities from cross-boundary economic activities.
Under the agreement, any Belarusian tax paid by Hong Kong companies 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.
For Belarusian companies, the tax they pay in Hong Kong will be allowed as a credit against the tax payable on the same income in Belarus.
The agreement will come into force after the completion of ratification procedures on both sides.
For Hong Kong, it will be implemented by an order to be made by the Chief Executive in Council under the Inland Revenue Ordinance, subject to Legislative Council vetting.