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Mainlandand HKSAR sign Fifth Protocol to Arrangement for Avoidance of Double Taxation

Mainland and HKSAR signed the Fifth Protocol to the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income on 19 July 2019.

This Protocol adds a new teachers and researchers article to the Arrangement. With this new article, a qualified teacher or researcher, who is employed in Hong Kong or the Mainland and engages in teaching and research activities on the other side, shall be exempt from taxation on that other side for a period of three years, provided that the relevant income has been subject to tax on the side where the person concerned is employed.

In addition, this Protocol incorporates into the Arrangement measures to prevent tax treaty abuse, which form part of the Base Erosion and Profit Shifting package promulgated by the Organization for Economic Co-operation and Development in October 2015, to ensure that the Arrangement follows the latest international standard.

The Fifth Protocol will come into force after the completion of ratification procedures and notification by both sides.


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