Representatives of the governments of Hong Kong and Russia in January 2016 signed a new income tax treaty that allocates taxing rights between the two jurisdictions, provides for reduced withholding tax rates, and is intended to provide investors greater certainty on their potential tax liabilities arising from cross-border activities.
The Hong Kong-Russia income tax treaty will enter into force after the completion of the ratification procedures in both jurisdictions. If the ratification process is completed in 2016, the income tax treaty will be effective 1 April 2017 in Hong Kong, and 1 January 2017 in Russia.
Among the provisions in the tax treaty are the following:
The new income tax treaty includes the following withholding tax rates for passive income:
Read a January 2016 report [PDF 167 KB] prepared by the KPMG member firm in Hong Kong: Hong Kong and Russia conclude Double Tax Agreement
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