Hong Kong, Korea tax treaty enters into force

Hong Kong’s tax authority today announced that a tax treaty between Hong Kong and Korea entered into force as of September 27.

The treaty, signed July 8, 2014, becomes effective in 2017.

Under the agreement, Korean withholding tax on interest, which currently ranges from 14 to 20 percent, is reduced to 10 percent; Korean withholding tax on royalties is reduced from 20 percent to 10 percent; and the Korean withholding tax on dividends is reduced from 20 percent to 10 or 15 percent, depending on percentage of shareholdings.

Other provisions specify taxation of Hong Kong airlines operating in Korea and profits from international shipping arsing in Korea.

See:

• Treaty

Related MNE Tax articles:

• Hong Kong and South Korea sign double tax agreement, text available