Hong Kong, Georgia Tax Deal To Enter Into Force
Mary Swire, Tax-News.com, Hong Kong
06 August, 2021
The Hong Kong Government has announced that the comprehensive double tax agreement it signed with Georgia last year will enter into force on July 1.
Under the agreement, any tax paid in Georgia by Hong Kong companies 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.
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.
Georgia's withholding tax rates for Hong Kong residents on interest and royalties income will be capped at five percent at source. Profits from international shipping transport earned by Hong Kong residents arising in Georgia will not be taxed in Georgia.
The agreement will have effect in respect of Hong Kong tax from April 1, 2022, the Government has said.