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India & Hong Kong Signed Double Taxation Avoidance Agreement Details
India & Hong Kong Signed Double Taxation Avoidance Agreement- Details, Features, Purpose, Benefits
India and Hong Kong have signed double taxation avoidance agreement (DTAA) and the prevention of fiscal evasion with respect to taxes on income on 19th March 2018 in Hong Kong, China.
The agreement was signed between India Ambassador to China Gautam Bambawale and Finance Secretary, Paul Chan Mo-Po of the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China.
The agreement signed is aimed to improve transparency in tax matters and will help curb tax evasion and tax avoidance.
The agreement signed will also galvanize the flow of investment, technology and personnel from India to Hong Kong and therefore, prevent double taxation and provide for the exchange of information between the two entities.
Under the agreement, the investors’ will get an advantage of lower withholding tax of 10% on interest or royalties provided. It will also cater for capital gains taxation of indirect transfers. It provides that gains from the sale of shares of company deriving more than 50% of its value from property situated in a country will be taxed in that country.
This agreement will give protection & security against double taxation to over 1,500 Indian companies and businesses that are present in Hong Kong as well Hong Kong-based companies in India.
