In addition, under the DBA, Hong Kong airlines flying to Brunei are taxed at the Hong Kong corporate tax rate (which is lower than Brunei`s). Profits from international shipping made by Hong Kong residents but made in Brunei, which are currently taxable in Brunei, will be tax-exempt under the agreement. “The conclusion of a comprehensive double taxation agreement with the continent, as well as the closer economic partnership agreement on the mainland and in Hong Kong, will further encourage international investors to enter the continental market via Hong Kong. In addition, cross-border financing agreements and the transfer of technical know-how and patents between the two sites will be improved. These will help stimulate Hong Kong`s economy, strengthen our competitiveness and attract foreign capital. Under the agreement, profits transferred from a Thai branch to its headquarters in Hong Kong are exempt from withholding tax in Thailand for 10%. In August 2006, the Chinese and Hong Kong authorities signed an agreement to avoid double taxation, which aims to guarantee tax debt and tax savings to investors and taxpayers in both localities. Under the Convention, Switzerland is exempt from double taxation. In addition, the withholding rate at source has been reduced to 10%. The agreement also plays a role in protecting the Treasury by adopting provisions to combat tax evasion and evasion, in part through measures to exchange information between tax authorities. All recent UK double taxation conventions largely follow the Organisation for Economic Co-operation and Development`s (OECD) approach to income and capital tax model. The agreements for the College continue this approach.
Prior to the December 2003 agreement, royalties granted by a Hong Kong resident from a Belgian source that was not attributable to any stable establishment in Belgium were subject to a Belgian withholding tax of 15% on the gross amount of royalties, net of a fixed deduction of 15%. Under the agreement, the Belgian withholding tax was set at 5% of the gross amount of royalties (excluding the 15% vat deduction). Drop. With regard to interest received by a Hong Kong resident residing in Belgium, which is not attributable to a stable establishment in Belgium, the Belgian withholding tax has been reduced from 15% of the gross rate to 10% under the agreement. In June 2001, Hong Kong concluded a limited maritime traffic agreement with the United Kingdom. The agreement is limited to revenues from international maritime traffic and provides that profits made by a UK company or SAR as a result of such transactions are exempt from the territory of the other party. The provisions of the agreement, which come into force on 3 May 2001, apply to corporation tax in the United Kingdom from 1 April 2002 and from 6 April 2002, apply to income and capital gains tax. It applied to the RAD as of April 1, 2002. The agreement was also the first Hong Kong DBA to be signed using the Organisation for Economic Co-operation and Development standard for the exchange of tax information.