Hong Kong and Malta sign tax treaty

The Secretary for Financial Services and the Treasury, Professor K C Chan, signed an agreement with the Ambassador of Malta to China, Mr. Joseph Cassar, the Republic of Malta for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income on 8 November 2011. This is the 22nd comprehensive agreement for the avoidance of double taxation ("CDTA") concluded by Hong Kong with its trading partners.

The following countries have singed the CDTA with Hong Kong:

Belgium, Thailand, the Mainland of China, Luxembourg, Vietnam, Brunei, the Netherlands, Indonesia, Hungary, Kuwait, Austria, the United Kingdom, Ireland, Liechtenstein, France, Japan, New Zealand, Switzerland, Portugal, Spain and the Czech Republic.

Under the signed CDTA, Hong Kong residents are entitled to different tax preferential treatment. For example, tax paid on an income according to the regulation of certain countries will be allowed as a credit against Hong Kong tax payable on that income. However, the amount of tax credit shall not exceed the amount of tax payable in respect of that income calculated in accordance with the local tax laws and regulations.

The above information was extracted from the press release of Hong Kong Inland Revenue Department. For more information, please visit the website: http://www.ird.gov.hk/chi/ppr/archives/11110801.htm.