A comprehensive agreement providing for the avoidance of double taxation entered into force between Hong Kong and Serbia on December 30, 2020, after the completion of the relevant ratification procedures, a Hong Kong government spokesperson has announced.
The new agreement, signed by the two countries in August 2020, will have effect in respect of Hong Kong tax for any year of assessment beginning on or after April 1, 2021, the spokesperson said.
Under the agreement, Serbia’s withholding tax rates for Hong Kong resident companies on dividends, interest, and royalties would be capped at 10 percent.
Also, profits from international shipping transport earned by Hong Kong residents arising in Serbia will not be taxed in Serbia.
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