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– New double taxation agreement with Cambodia

Hong Kong has signed a comprehensive double taxation agreement (CDTA) with Cambodia on 26 June 2019. This brings the number of CDTAs Hong Kong has concluded with other jurisdictions to 41, out of which 37 are effective and the remaining 4 (i.e. Saudi Arabia, India, Finland and Cambodia) will become effective after all relevant ratification procedures are completed. It is expected that Hong Kong will sign more and more CDTAs with other jurisdictions. There are 14 CDTAs under negotiation between Hong Kong and the following jurisdictions:

  

New preferential Individual Income Tax policy in Greater Bay Area of China

The Chinese Ministry of Finance and State Administration of Taxation recently issued a circular regarding the Individual Income Tax (“IIT”) preferential policy for the Guangdong-Hong Kong-Macau Greater Bay Area. Since the tax difference between Mainland China and Hong Kong is quite significant, the implementation of the IIT preferential policy will make the Greater Bay Area more attractive to talents and will boost the construction and development of the area.

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