On the 29th, the Hong Kong SAR government signed a comprehensive double taxation agreement with the Laotian government in Hong Kong.
Chen Maobo, Financial Secretary of the Special Administrative Region Government, said that Laos is a member of the Association of Southeast Asian Nations (ASEAN) and a country jointly building the "the Belt and Road". There is huge potential for cooperation with Hong Kong in such fields as trade and investment. The agreement will help promote economic and trade ties between the two regions, further leverage Hong Kong's unique role as a "super contact" and "super value-added person" connecting the mainland and international markets, and create favorable conditions for promoting regional economic integration.
The Director of the Finance and Treasury Bureau of the Special Administrative Region Government, Xu Zhengyu, said that this agreement is the 61st agreement in Hong Kong, the 6th one this year, and the 16th one signed by the current SAR government, marking the continuous achievements of the SAR government's active expansion of the agreement network.
According to this agreement, taxes paid by Hong Kong residents in Laos can be offset against taxes levied by Hong Kong on the same income under the Hong Kong Inland Revenue Ordinance (Chapter 112). In addition, the withholding tax rate for dividends levied by Laos on Hong Kong residents will be reduced from the current 10% to a minimum of 5%, and the withholding tax rate for interest will also be reduced from the current 10% to 5%. The agreement will come into effect after both parties have completed the relevant approval procedures. (Looking into the New Era)