Prior to the December 2003 agreement, royalties granted by a Hong Kong resident from a Belgian source that was not attributable to any stable establishment in Belgium were subject to a Belgian withholding tax of 15% on the gross amount of royalties, net of a fixed deduction of 15%. Under the agreement, the Belgian withholding tax was set at 5% of the gross amount of royalties (excluding the 15% vat deduction). drop. With regard to interest received by a Hong Kong resident residing in Belgium, which is not attributable to a stable establishment in Belgium, the Belgian withholding tax has been reduced from 15% of the gross rate to 10% under the agreement. Under the agreement, profits transferred from a Thai branch to its headquarters in Hong Kong are exempt from withholding tax in Thailand for a sum of 10%. A copy of the National Interest Analysis can be found in taxpolicy.ird.govt.nz/sites/default/files/tax-treaties/2018-nia-protocol-2-nz-hong-kong.pdf WELLINGTON, August 13 (Xinhua) — New Zealand has improved New Zealand`s ability to detect and prevent tax evasion through an update of the country`s double taxation agreement with China`s Special Administrative Region of Hong Kong, which is now in force, Finance Minister Stuart Nash said Monday. In August 2006, the Chinese and Hong Kong authorities signed an agreement to avoid double taxation, which aims to guarantee tax debt and tax savings to investors and taxpayers in both localities. The following information provides succinct details on some important double tax evasion agreements signed by SADA Hong Kong. “The double taxation agreement with Hong Kong is one of 40 such tax treaties with our major trading and investment partners,” Nash says.
“They promote the growth of economic relations by reducing tax barriers to cross-border trade and cross-border investment.” Foreign income from a New Zealand tax liability is subject to New Zealand tax at the marginal tax rate of the taxpayer. The foreign tax paid is available in the form of credit up to the corresponding New Zealand tax. The withholding tax (NRWT) deducted from passive income (interest/dividends/royalties) is generally fully available in the form of credit.
