• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/31/2013

Hong Kong - Tax treaty with Canada enters into force 

October 31: The Hong Kong-Canada income tax treaty, signed 11 November 2012, entered into force on 29 October 2013.

The withholding tax rates under the treaty are:

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

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

A release from Finance Canada states 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.

Read a November 2013 report (PDF 384KB) prepared by the KPMG member firm in Hong Kong: Comprehensive double taxation agreement between Hong Kong and Canada enters into force

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