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Australia Double Tax Agreement With Hong Kong

April 8th, 2021

As a general rule, free trade agreements are accompanied by a comprehensive double taxation agreement. We hope that will be the case in Australia. No no. At face value, this is a theoretical risk of double taxation. However, Australia is likely to allow foreign income tax compensation for taxes paid on Hong Kong income, and Hong Kong does not tax income from non-Hong Kong sources. As a result, the real risk of double taxation for Australian residents working in Hong Kong is low. Hong Kong also has 20 fa agreements with Australia, Austria, Belgium, Luxembourg, Canada, Chile, Denmark, Finland, France, Germany, Italy, Japan, Republic of Korea, Kuwait, netherlands, New Zealand, Sweden, Switzerland, Thailand and the United Kingdom. Hong Kong currently has free trade agreements with mainland China, New Zealand, Iceland, Liechtenstein, Norway, Switzerland, Chile, Macau, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and Georgia. Hong Kong has also concluded negotiations with the Maldives and Australia.

This brings the total number of free trade agreements concluded by Hong Kong to 21. 1 Australia`s income tax agreements will be implemented by the International Tax Agreements Act of 1953. The agreement between the Australian Bureau of Trade and Industry and the Taipei Economic and Cultural Office on the prevention of double taxation and the prevention of income tax evasion is a less treaty-compliant document, adopted as Schedule 1 of the International Tax Agreements Act of 1953. 2 The multilateral instrument is legally applicable under the International Tax Agreements Act of 1953. Their entry into force was notified on 10 January 2019, in accordance with Section 4A. The reason is the amendment of the Treasury Laws (OECD Multilateral Instrument) Bill 2018. Remember: you may still have a tax specialist in Australia, even if you have not been physically present in Australia all year. Check your position with a professional advisor. A tax treaty is also called a tax treaty or double taxation agreement (DBA). They prevent double taxation and tax evasion and promote cooperation between Australia and other international tax authorities by enforcing their respective tax laws. [1] In certain circumstances, where a company has a sufficient connection to Australia, the benefit granted to a worker in a foreign company may not be taxable to the worker.


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