United States Hong Kong Income Tax Treaty

The new protocol signed 19 july 2019 would be the fifth protocol to the income tax treaty and includes measures.

United states hong kong income tax treaty. The countries that have income tax treaties with the united states. The irs general international tax laws apply. Addressing tax treaty abuse pursuant to the beps project with a goal that the treaty would follow the latest standard of international tax rules. If you have problems opening the pdf document or viewing pages download the latest version of adobe acrobat reader for further information on tax treaties refer also to the treasury department s tax treaty documents page.

These reduced rates and exemptions vary among countries and specific items of income. Has entered into nearly 60 income tax treaties with other countries as of 2019 the united states and hong kong have not entered into a bilateral tax treaty. Passive income withholding tax. Hong kong tax treaty.

So far hong kong has concluded 44 tax treaties and is party to a series of treaties under negotiation. Income tax for residents of that particular country. The hong kong tax on salaries is based on a person s income less any personal allowances allowable deductions and donations to charity. Overview the united states has income tax treaties with a number of foreign countries.

Under these treaties residents not necessarily citizens of foreign countries are taxed at a reduced rate or are exempt from u s. The treaties currently in force are. These reduced rates and exemptions vary among countries and specific. 6 april 2011 for income tax and capital gains tax.

Providing tax relief to eligible researchers and teachers in china and hong kong with a. Under these treaties residents not necessarily citizens of foreign countries may be eligible to be taxed at a reduced rate or exempt from u s. Under the treaty arrangement withholding tax on dividend and interest would be reduced to 5. The hong kong tax rate is progressive and capped at a rate of 17.

The agreement is effective in hong kong from 1 april 2011 and in the uk from. The hong kong withholding tax on royalties would be under the treaty arrangement reduced from the standard rate of 4 95 to 3 in most situations. The tax treaty tables page lists. The united states has tax treaties with a number of foreign countries.

This is significantly lower than many taxes in western nations inclusive of united states expat tax. 1 april 2011 for corporation tax. Income taxes on certain items of income they receive from sources within the united states.