Hong Kong, Mauritius sign agreement against double taxation
The agreement also provides tax relief measures.
The Hong Kong and Mauritius governments have signed a comprehensive avoidance of double taxation agreement (CDTA), expanding its tax treaty network.
The agreement provided that any tax paid in Mauritius by Hong Kong companies will be considered as credit against the tax payable in Hong Kong on the same income.
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The agreement also provided for tax relief measures, such as a 5% rate cap on Mauritius’ withholding tax rates for Hong Kong residents on interest and royalties.
Tax on profits from international shipping transport earned by Hong kong residents arising in Mauritius will also be waived.
The government noted this is the 46th CDTA entered into by Hong Kong.
It is intended to help investors better assess their potential tax liabilities from cross-border economic activities.