china: Differing Interpretations of New Arrangement With China May Affect Hong Kong Companies

The key terms and interpretational differences in the new China-Hong Kong comprehensive double tax arrangement and their implications are summarized. Articles 4.1(2)(ii) and (iii) provide that a person other than an individual that is incorporated or constituted outside Hong Kong will be deemed a Ho...

Full description

Saved in:
Bibliographic Details
Published in:Journal of International Taxation 2007-10, Vol.18 (10), p.6
Main Authors: Lim, Lisa, Shi, Chuan, Chu, Sandy, Qiu, Travis, Wang, Jeanne, Ni, Yongjun Peter, Chan, Agnes, Shuen, Loretta, Tang, Grace
Format: Article
Language:English
Subjects:
Capital gains
Competent authority
Corporate income tax
Employee leasing
Income taxes
International taxation
Licenses
Permanent establishment
Stockholders
Tax assessments
Tax rates
Tax treaties
Taxable income
Transfer pricing
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The key terms and interpretational differences in the new China-Hong Kong comprehensive double tax arrangement and their implications are summarized. Articles 4.1(2)(ii) and (iii) provide that a person other than an individual that is incorporated or constituted outside Hong Kong will be deemed a Hong Kong resident if that person is normally managed or controlled in Hong Kong. Article 5.3(2) states that a permanent establishment (PE) will exist if services are performed in the other contracting state only if the activities continue for a period or periods aggregating more than six months within any 12-month period. Revised DIPN 44 highlights that the reduced Chinese withholding tax rates on dividends, interest, and royalties under the DTA apply only if the Hong Kong residents are receiving the income concerned as a beneficial owner instead of as an agent or nominee.
ISSN:1049-6378