Hong Kong, Jersey DTA In Force

By ExpatBriefing.com Editorial 11 July, 2013

The double taxation agreement (DTA) between Hong Kong and Jersey came into force on July 3, 2013, after the completion of ratification procedures by both sides.

The agreement was signed in February last year, and sets out the allocation of taxing rights between the two jurisdictions and the tax relief on different types of both corporate and personal incomes, such as business profits, dividends, interest, royalties, income from employment and pensions.

The DTA has also incorporated the latest Organization for Economic Co-operation and Development standard on exchange of information relating to tax matters.

Coinciding with a visit to China and Hong Kong by Jersey's Chief Minister Senator Ian Gorst, the entry into force of the agreement is expected to bring significant benefits to Jersey's finance industry, reinforcing the focus it has on building business in Asia and resolving issues relating to potential double taxation of both corporate and personal incomes. Jersey Finance has had a permanent office in Hong Kong since 2009.

Geoff Cook, chief executive, Jersey Finance said: "The benefits of this DTA right across Jersey's wealth management, expatriate banking and corporate service areas are significant. It will add greatly to the reasons for investors and institutions in Hong Kong to have confidence in and choose Jersey as their preferred European financial center to invest in Western markets. It is a major milestone of recognition between the jurisdictions."

Tags: Individuals | Expatriates | Finance | Tax | Investment | Business | Pensions | Double Tax Agreement (DTA) | Royalties | Banking | Financial Services | Investment Funds | Corporation Tax | Jersey | Agreements | Hong Kong | Dividends | Individual Income Tax | Services |

 





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