Gov’t inks tax pact with Maldives

This will offer double taxation relief for Hong Kong companies.

Hong Kong signed a comprehensive avoidance of double taxation agreement (CDTA) with the Maldives.

Under the CDTA, Hong Kong companies will enjoy double taxation relief, as any tax paid in the Maldives—whether directly or by deduction—can be credited against the tax payable in Hong Kong on the same income under Hong Kong tax laws.

The CDTA’s allocation of taxing rights between Hong Kong and the Maldives will also help investors in assessing their potential tax liabilities from cross-border economic activities.

“The Maldives is a participant in the Belt & Road Initiative, and this CDTA [...] signifies the ongoing achievements of the Hong Kong SAR Government in expanding the city’s CDTA network, in particular with tax jurisdictions participating in the Belt & Road Initiative,” Christopher Hui, secretary for Financial Services and the Treasury said.