An extensive double taxation agreement between the Government of Canada and the Government of the Hong Kong was signed on November 11, 2012 for the avoidance of double taxation.
According to agreement, the rate of withholding for dividends paid between companies is 5%, 15% for dividends paid in all other cases and 10% for payments of interest and royalties. The exemption of withholding tax on certain interest payment is applicable subject to certain condition. The Agreement will enter into force after the confirmation each other that the formalities required by their laws for the bringing into force of the Agreement have been fulfilled.
