HK, Georgia Sign Tax Pact

The Government today said Hong Kong has signed a comprehensive avoidance of double taxation agreement (CDTA) with Georgia today, signifying its sustained efforts in expanding the city’s tax treaty network.

Secretary for Financial Services & the Treasury Christopher Hui signed the agreement on behalf of the Government.

Georgia is an emerging economy which participates in the Belt & Road Initiative.

This is the 45th CDTA that Hong Kong has concluded. It sets out the allocation of taxing rights between the two jurisdictions and will help investors better assess their potential tax liabilities from cross-border economic activities.

Double taxation will be avoided in that any tax paid in Georgia by Hong Kong companies under the agreement will be allowed as a credit against the tax payable in Hong Kong on the same income, subject to the provisions of the tax laws of Hong Kong.

Likewise, for Georgian companies, the tax paid in Hong Kong will be allowed as a deduction from the tax payable on the same income in Georgia.

The agreement also provides tax relief arrangements.

It will come into force after both sides complete ratification procedures.