Double taxation relief
Due to the international nature of shipping operations, shipping operators are more susceptible to double taxation than other taxpayers. It is therefore the Hong Kong Special Administrative Region Government's (HKSARG) objective to make arrangements with its trading partners for the avoidance of double taxation on income derived from international shipping operation. Such arrangements reduce the overall tax burden of ship operators of Hong Kong and the trading partners, thereby improving their international competitiveness. This will also help enhance Hong Kong's position as an international maritime centre.
Hong Kong has signed bilateral double taxation relief agreements covering shipping income with 56 trading partners.
Double taxation relief arrangements may take one of the following forms:
Comprehensive DTA (CDTA)A bilateral agreement/arrangement that provides relief from double tax to all types of income including shipping income.
CDTA CONCLUDED
Africa
Mauritius
South Africa
America
Canada
Mexico
Asia
Armenia
Bahrain
Bangladesh
Brunei
Cambodia
India
Indonesia
Japan
Korea
Kuwait
Macao SAR
Mainland China
Malaysia
Pakistan
Qatar
Saudi Arabia
Thailand
United Arab Emirates
Vietnam
Europe
Austria
Belarus
Belgium
Croatia
Czech
Estonia
Finland
France
Georgia
Guernsey
Hungary
Ireland
Italy
Jersey
Latvia
Liechtenstein
Luxembourg
Malta
Netherlands
Portugal
Romania
Russia
Serbia
Spain
Switzerland
United Kingdom
Oceanic and Pacific Islands
New Zealand
Agreement for the avoidance of double taxation (DTA) covering shipping incomeA bilateral agreement to provide for profits derived from the operation of ships in international traffic by a shipping enterprise of one contracting party to be exempted from taxes in the other contracting party on a reciprocal basis. In other words, it is an agreement to relieve shipowners of the burden of double tax.
Shipping DTA Concluded
Denmark
Germany
Netherlands
Norway
Singapore
Sri Lanka
United Kingdom
Reciprocal tax exemption (RTE)Section 23B of the Inland Revenue Ordinance provides for reciprocal tax exemption for shipping income, so that ship operators can benefit from the tax relief offered by places with similar reciprocal tax exemption legislation.
RTE CONCLUDED
More information on double taxation relief can be found at the website of Inland Revenue Department(Click here).