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Hong Kong signed a comprehensive double taxation agreement with Jordan in Beijing, as the city is expanding its partnership with countries in the Belt and Road Initiative.
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It is also Hong Kong’s 53rd such pact.
The agreement will slash withholding tax rates on dividends, interest, and royalties for Hong Kong residents from a maximum of 10% to no more than 5 percent.
And the taxes paid in Jordan by Hong Kong residents will be credited against the tax payable on the same income in Hong Kong under the Inland Revenue Ordinance to avoid double taxation.
Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, signed the deal on behalf of the Hong Kong government after a bilateral meeting with Jordan’s Ambassador to China, Hussam Al Husseini.
Hui said the signing demonstrates Hong Kong's sustained efforts to deepen economic and financial connections with BRI countries. He added that the deal provides a strong platform to boost financial and trade ties with Jordan and helps investors better assess the potential tax liabilities of cross-border activities.
The CDTA will take effect after both sides complete the necessary approval procedures. In Hong Kong, an order will be made by the Chief Executive in Council under the Inland Revenue Ordinance and then submitted to the Legislative Council for negative vetting.
