Taxation
Potential Tax Treaty Partners for Hong Kong
31 July 2020
Your ref: TsyB R2 183/800-1/1/0 (C)
31 July 2020
Mr Stephen Lo Principal Assistant Secretary for Financial Services & the Treasury (Treasury)(R2) Financial Services and the Treasury Bureau 24/F, Central Government Offices 2 Tim Mei Avenue, Tamar Hong Kong By Email and Post
Dear Mr Lo
Potential Tax Treaty Partners for Hong Kong
Thank you for your letter of 2 July 2020 inviting the Hong Kong General Chamber of Commerce to provide suggestions on prospective jurisdictions that Hong Kong should actively pursue Comprehensive Avoidance of Double Taxation Agreements (“CDTAs”).
The Chamber believes the pursuit of CDTAs is the right direction for Hong Kong in maintaining its role as a preferred conduit for facilitating the flow of international trade and investment. A wider network of CDTAs would also help us attract international businesses that are keen to capitalise on the opportunities that our unique position offers as a strategic gateway for investments in and out of the Mainland. As such, we recommend that the Government consider the jurisdictions on the attached list for CDTA discussions.
We also understand that the Government is currently engaged in CDTA negotiations with Germany, Nigeria and Turkey. Given the considerable market size of these three countries, we look forward to the successful conclusion of such negotiations as soon as practicable.
Yours sincerely
George Leung CEO
Encl.
Proposed Potential CDTA Negotiation Partners
Jurisdictions
Priority
Reasons
Southeast Asia
East Timor
Low
- Belt and Road economy
Laos
Medium
- Belt and Road economy,
- Free Trade Agreement with Hong Kong.
Myanmar
Medium
- Belt and Road economy,
- Free Trade Agreement with Hong Kong.
Philippines
Medium
- Belt and Road economy,
- APEC member,
- Free Trade Agreement with Hong Kong.
Singapore
High
- Belt and Road economy,
- Free Trade Agreement with Hong Kong,
- APEC member,
- Important trading partner and investment source.
Taiwan
Medium
- APEC member with extensive investments in Mainland China,
- Important trading partner and investment source.
Central and Western Asia
Azerbaijan
High
- Belt and Road economy
Kazakhstan
Medium
- Belt and Road economy.
Australasia
Australia
High
- Free Trade Agreement with Hong Kong,
- APEC member,
- Important trading partner,
- Major commodities/natural resources player that is of interest to Mainland investors.
Americas
United States
Medium
- Important trading partner,
- APEC member.
Chile
High
- Hong Kong’s 3rd and 34th largest trading partner respectively in Latin America and the world,
- APEC member
- Fulfilment of an agreement in principle reached in October 2019,
- Free Trade Agreement with Hong Kong.
Middle East and Africa
Algeria
High
- Belt and Road economy.
Egypt
High
- Belt and Road economy.
Libya
Medium
- Belt and Road economy but subject to the restoration of general law and order in the country.
Tunisia
High
- Belt and Road economy.
Central and Eastern Europe
Bulgaria
High
- Belt and Road economy.
Poland
High
- Belt and Road economy.
Southern and Northern Europe
Greece
High
- Belt and Road economy.
Sweden
Medium
- One of the top four European destinations for Chinese investment.
Iceland
Medium
- Free Trade Agreement with Hong Kong.
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