exploring-the-hkluxembourg-double-tax-agreement

Exploring the HK-Luxembourg double tax agreement

Under the agreement, which is expected to take effect by the end of this year, Hong Kong companies will no longer be subject to withholding tax.
Hong KongÆs new double taxation agreement with Luxembourg will give resident companies withholding tax free access to LuxembourgÆs capital markets. Under the agreement, companies will be able to use Luxembourg as a tax free conduit for investments in any of the European UnionÆs EU 27 markets.

The advantages of the double taxation agreement apply to any company incorporated under the laws of, or nominally managed or controlled in, Hong Kong and include 0% withholding tax on both dividends and interest, and a 3% withholding tax on royalties. One notable exception to the agreement is recipients of dividends who do not own at least 10% of the companyÆs capital or whose cost for the acquisition of...
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