Hong Kong: New income tax treaty with Mauritius

Hong Kong signed a new income tax treaty with Mauritius

Hong Kong signed a new income tax treaty with Mauritius

Hong Kong signed a new income tax treaty with Mauritius on 7 November 2022, the benefits of which include:

  • Reduced withholding tax (WHT) rates for interest and royalties
  • Elimination of WHT on service/consultancy fees
  • Tax exemption for business profits in the absence of a permanent establishment (PE)

The new treaty will enter into force after completion of the ratification procedures in both Hong Kong and Mauritius. The earliest possible effective dates of the new treaty would be 1 July 2023 in Mauritius and from year of assessment 2023/2024 (which begins on 1 April 2023) in Hong Kong.

For more information, contact a KPMG tax professional:

David Ling | davidxling@kpmg.com

 

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