Hong Kong has signed a comprehensive avoidance of double taxation agreement (CDTA) with Norway, marking its fourth such pact this year as the city steps up efforts to strengthen its appeal as an international business and investment hub.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu signed the agreement with the Government of the Kingdom of Norway in Beijing on Tuesday. Hui had visited Norway to discuss the matter in June.
Under the agreement, Hong Kong residents who pay taxes in Norway can offset the amount against their Hong Kong tax bill for the same income, subject to the provisions of the Inland Revenue Ordinance, according to the government’s press release.
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Norway will also cut its withholding tax on dividends for Hong Kong residents from as much as 25 per cent to either 5 per cent or 15 per cent, depending on the percentage of their shareholdings. The CDTA would come into force after completion of ratification procedures by both sides.
“The CDTA sets out the allocation of taxing rights between Hong Kong and Norway, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and enjoy avoidance of double taxation,” said Hui. “It is envisaged that this CDTA will create a more attractive business environment for the two places.”
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Hui used Tuesday’s meeting to pitch Hong Kong’s strengths as an international financial and commercial centre to Norway’s ambassador to China, Vebjørn Dysvik, as the two sides explored cooperation in areas such as maritime finance, green finance and wealth management.