08.Oct .2020 10:55

Hong Kong, Georgia sign tax agreement lowering withholding tax rates

Hong Kong, Georgia sign tax agreement lowering withholding tax rates
views 419
Back

Hong Kong and Georgia tax officials today signed a tax agreement designed to promote economic and trade cooperation between the two jurisdictions. BM.GE reports citing Mnetax.com.

The Hong Kong-Georgia tax agreement allocates taxing rights between the two jurisdictions. It also provides relief from double taxation arising from transactions that Hong Kong and Georgia residents undertake in the other jurisdiction.

The new agreement provides that Georgia’s withholding tax rates for Hong Kong residents on interest and royalties will be capped at 5 percent and that profits from international shipping transport earned by Hong Kong residents arising in Georgia will not be taxed in Georgia.

Each jurisdiction must take further steps to ensure that the agreement enters into force.