Shipowners are at particularly high risk of double taxation. Hong Kong legislation provides for a reciprocal tax exemption for the profits of ships. Hong Kong has agreements with Denmark, Germany, Norway, the Netherlands, the United Kingdom and the United States. Airlines (such as passenger airlines, air freight, etc.) may be more vulnerable to double taxation because of the international nature of their airlines. Bilateral air services agreements have been concluded because they can be negotiated and concluded much more quickly than double taxation agreements. Hong Kong has bilateral air services agreements with Bangladesh, Belgium, Canada, Croatia, Denmark, Estonia, Ethiopia, Fiji, Finland, Germany, Iceland, Israel, Jordan, Kenya, Kuwait, Laos, Macao SAR, mainland China, Maldives, Mauritius, Mexico, the Netherlands, New Zealand, Norway, the Federation of Russia Sweden, Switzerland and the United Kingdom. A full list of global double taxation agreements can be accessed on the Department of Internal Revenues website. Here is a list of the global double taxation agreements being negotiated. Despite the low risk of double taxation in Hong Kong, the government has signed a vast network of double taxation agreements, as investors reduce the security and risk they offer.
The benefits are: higher prices are another way to help businesses reduce the risk of double taxation. An expanded price agreement is an agreement between a company that pays taxes and the tax authorities, in this case the National Revenue Department, on the transfer pricing method of a fixed schedule for transactions between related companies (for example. B, a multinational parent company and its subsidiary in Hong Kong). In addition, there is a double taxation agreement between Hong Kong and Saudi Arabia, which is currently pending. There is also a Memorandum of Understanding with China in which: a comprehensive DBA generally covers the following provisions: There are agreements for the exchange of tax information to promote international tax cooperation and combat tax evasion. Many Hong Kong double taxation conventions contain information provisions. Hong Kong has also signed a series of stand-alone agreements on the exchange of tax information.