Hong Kong and Serbia have signed an agreement designed to help their residents avoid double taxation, the Hong Kong government today announced. The agreement is not yet in force, both countries must take further steps to ensure its ratification.
Under the agreement, Serbia’s withholding tax rates for Hong Kong resident companies on dividends, interest, and royalties would be capped at 10 percent.
Further, profits from international shipping transport earned by Hong Kong residents arising in Serbia will not be taxed in Serbia.
Christopher Hui signed the agreement on behalf of the Hong Kong Special Administrative Region government.
“Serbia is one of the emerging economies participating in the Belt and Road Initiative, which brings about vast business opportunities. The [agreement] will promote economic and trade connections between Hong Kong and Serbia, and offer additional incentives for the business sector of both sides to do business or make investments,” Hui said.
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