Hong Kong has signed a comprehensive double taxation avoidance agreement with Rwanda, cutting the withholding tax rates for local residents in the country by up to half to 7.5 percent.
The agreement was signed after Secretary for Financial Services and the Treasury Christopher Hui Ching-yu had a bilateral meeting with the African country’s Minister of Finance and Economic Planning Yusuf Murangwa in the SAR on Thursday, the government said in a statement.
Rwanda's withholding tax rates for Hong Kong residents on dividends, interest, royalties, and fees for technical services will be reduced to 7.5 percent to 10 percent, down from the current rate of up to 15 percent, according to the deal.
Local residents can also avoid double taxation in that any tax paid in Rwanda will be allowed as a credit against the tax payable in Hong Kong in respect of the same income, subject to the provisions of the Inland Revenue Ordinance, it said.
The signing “demonstrates Hong Kong's continuous efforts in deepening co-operation with Belt and Road economies, and is also a significant milestone in promoting the financial, economic and trade connections” between the two economies, Hui said.
The government will continue to expand the financial hub’s CDTA network to “enhance its attractiveness as a business and investment hub, and consolidate the city's status as an international financial and trade center," he added.
