Entry into Force of the Agreement between the Government of Japan and the Government of the Hong Kong Special Administrative Region of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

July 15, 2011
Japanese

  1. Japan for the entry into force of the Agreement to the Financial Services and the T On July 15, with regard to the Agreement between the Government of Japan and the Government of the Hong Kong Special Administrative Region of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (signed on November 9, 2010), the Consulate-General of Japan in the Hong Kong Special Administrative Region of the People's Republic of China sent a notification on the completion of internal procedures of reasury Bureau of the Government of the Hong Kong Special Administrative Region of the People's Republic of China. Thus, all the necessary procedures for the entry into force of the Agreement have been completed.

  2.  This Agreement will enter into force on August 14, 2011 and shall be applicable:
     (1) in the case of Japan:
     (i) with respect to taxes withheld at source, for amounts taxable on or after January 1, 2012;
     (ii) with respect to taxes on income which are not withheld at source, as regards income for any taxable year beginning on or after January 1, 2012;
     (iii) with respect to other taxes, as regards taxes for any taxable year beginning on or after January 1, 2012; and

     (2) in the case of the Hong Kong Special Administrative Region:
     (i) with respect to Hong Kong Special Administrative Region tax, for any year of assessment beginning on or after April 1, 2012.

  3.  Similar to the Agreements already concluded between Japan and other countries, this Agreement adjusts the double taxation between Japan and the Hong Kong Special Administrative Region arising from human and economic exchanges. Reflecting the strengthened economic relations between Japan and the Hong Kong Special Administrative Region, and to promote mutual investments, this Agreement clarifies the limit of withholding tax rates imposed on dividends, income from debt-claims (interest) and royalties (copy rights, patents and others), as well as prescribes the provisions for the exchange of information based on the international standard regarding taxes. It is expected that this Agreement will further strengthen the economic relations between Japan and the Hong Kong Special Administrative Region, and contribute to the prevention of fiscal evasion.
    • (*This is a provisional translation. The above date denotes the date of the issue of the original press release in Japanese.)
(END)


Back to Index