Hong Kong and Cambodia today signed a comprehensive tax treaty, Hong Kong’s Inland Revenue Department has announced.
The new tax treaty reduces withholding tax rates on interest, royalties, and fees for technical services from 14 percent to 10 percent. It also provides rules for taxation of airlines and shippers operating in the two countries, the Hong Kong government said.
“Cambodia was Hong Kong’s 38th largest trading partner in 2018. We have all along treasured our economic and trade ties with Cambodia and I have every confidence that this agreement will encourage more bilateral investments and bring our co-operation to a new level,” said Secretary for Financial Services and the Treasury, James Lau, who signed the agreement on behalf of Hong Kong.
This is the 41st tax treaty signed by Hong Kong, the government said.
The agreement is not yet in force as it must be ratified by the two countries.
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