Hong Kong and Laos ink pact against double taxation

Any tax paid in Laos will be credited against the tax payable in Hong Kong.

Hong Kong has entered into a comprehensive avoidance of double taxation agreement (CDTA) with Laos in a bid to boost bilateral trade and investment.

The CDTA sets out the allocation of taxing rights between the two countries, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and avoid double taxation.

Under the agreement, any tax paid by Hong Kong residents in Laos 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.

Laos' withholding tax rate for Hong Kong residents on dividends and interest, both at 10%, will also be reduced to a minimum of 5%.

"Laos is a member of the ASEAN and a participant in the Belt and Road Initiative, with significant potential for co-operation with Hong Kong in areas such as economy, trade and investment,” said Financial Secretary Paul Chan, who met with Laos Deputy Prime Minister and Minister of Finance Santiphab Phomvihane on 29 October.

“This CDTA helps foster economic and trade ties between the two places… and creates favourable conditions for advancing regional economic integration," he added.

The CDTA will come into effect after completion of ratification procedures by both sides.

It marks the sixth CDTA signed in 2026, the 16th signed by the current government, and the 61st overall.

Hong Kong has signed CDTAs with seven ASEAN member states, covering more than 70% of the region’s total population and GDP.