A tax treaty signed by Hong Kong and Russia entered into force on July 29, Hong Kong’s Inland Revenue department has announced. The agreement will be in effect in Hong Kong for any tax year of assessment beginning on or after April 1, 2017, the government said.
The agreement, signed January 19, reduces withholding tax on dividends to 5 percent if the beneficial owner is a company which holds directly at least 15 percent of the capital of the company paying the dividends.
In other cases, the withholding tax rate applied to dividends is 10 percent. The withholding tax rate for royalties under the treaty is reduced to 3 percent.
The agreement also covers taxation of property revenues and sea and air transportation earnings. It further includes provisions for exchange of tax information between tax administrations.
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