Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/12/2012

Hong Kong - Tax treaty with Switzerland enters into force 

November 12: The ratification processes concerning an income tax treaty between Hong Kong and Switzerland have been completed, and the treaty joins the 21 other treaties in Hong Kong’s network of income tax treaties.

The Hong Kong-Switzerland income tax treaty will be effective:


  • In Switzerland—(1) with respect to taxes withheld at source on amounts paid or credited on or after 1 January 2013, and (2) with respect to other taxes, for tax years beginning on or after 1 January 2013
  • In Hong Kong—for any year of assessment beginning on or after 1 April 2013

The withholding tax rates under the treaty are:


  • Dividends—0% (when the beneficial owner is a company holding at least 10% of the capital of the company paying the dividend, a pension fund, or the Hong Kong Monetary Authority) or 10%
  • Interest—0%
  • Royalties—3%

Read a November 2012 report [PDF 110 KB] prepared by the KPMG member firm in Hong Kong: Hong Kong-Switzerland comprehensive double taxation agreement enters into force




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

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