Hong Kong signed a Comprehensive Double Taxation Agreement (“CDTA”) with Ireland on June 22, 2010. This is Hong Kong’s 13th CDTA.
Secretary for Financial Services & the Treasury, Professor Chan commented that “the agreement will encourage Hong Kong enterprises to leverage on the success of Irish companies in the areas of technology, research and development, while facilitating Irish enterprises to tap into the Asian market, particularly the vast mainland market, using Hong Kong as a gateway”.
Under the CDTA, the withholding tax deducted from the payment of dividends by an Irish company to a Hong Kong resident has been reduced from 20% to nil. The withholding tax on the payment of royalties and interest will be capped at 3% and reduced to 10% respectively.
As with the CDTAs concluded since the enactment of the Inland Revenue (Amendment) Ordinance 2010, the Hong Kong/Ireland CDTA adopts the latest Organization for Economic Co-operation and Development standard on the Exchange of Information.
