In June 2001, Hong Kong concluded a limited maritime traffic agreement with the United Kingdom. The agreement is limited to revenues from international maritime traffic and provides that profits made by a UK company or SAR as a result of such transactions are exempt from the territory of the other party. The provisions of the agreement, which come into force on 3 May 2001, apply to corporation tax in the United Kingdom from 1 April 2002 and from 6 April 2002, apply to income and capital gains tax. It applied to the RAD as of April 1, 2002. Check tax rates, the latest tax information and information on double taxation agreements with our specialized online resources, guides and useful links. The agreement also plays a role in protecting the Treasury by adopting provisions to combat tax evasion and evasion, in part through measures to exchange information between tax authorities. All recent UK double taxation conventions largely follow the Organisation for Economic Co-operation and Development`s (OECD) approach to income and capital tax model. The agreements for the College continue this approach. In some cases, it is possible for the person to apply for tax relief, but the amount of relief depends on the DBA agreement between the UK and the country from which your income comes. The situation becomes more complicated when tax rates vary from country to country. So what`s going on? To further understand the double taxation convention, we gave a typical example: «The conclusion of a comprehensive double taxation agreement with the mainland, as well as the closer economic partnership agreement on the mainland and in Hong Kong, will further encourage international investors to enter the continental market via Hong Kong. In addition, cross-border financing agreements and the transfer of technical know-how and patents between the two sites will be improved. These will help stimulate Hong Kong`s economy, strengthen our competitiveness and attract foreign capital.
In September 2012, the Commissioner for Finance stated that Hong Kong had made «remarkable progress» in establishing its international network of tax treaties since the change in the internal income system in March 2010, and that since then the network of tax treaties in Hong Kong has rapidly expanded.