• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 10/29/2013

Canada - Tax treaty with Hong Kong enters into force 

October 29:  Canada Department of Finance today announced the entry into force of the Canada-Hong Kong income tax treaty.

The Canada-Hong Kong income tax treaty was signed 11 November 2012, and enters into force today, 29 October 2013.

The withholding tax rates under the treaty are:

  • Dividends – 0% / 15%
  • Interest – 0% / 10%
  • Royalties – 10%

Today’s release from Finance Canada briefly notes that the treaty provisions generally have effect in Canada:

  • In respect of tax withheld at the source—on amounts paid or credited to non-residents, on or after the first day of January 2014
  • In respect of other Canadian tax—for tax years beginning on or after the first day of January 2014.

The treaty provisions will have effect in Hong Kong as from 1 April 2014.

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