The agreement will take effect after ratification, applying in Hong Kong from 1 April and in the Maldives from 1 January of the year following its enforcement.
Hong Kong and the Maldives signed an income tax treaty on 26 May 2025.
This is the first income tax treaty between the two jurisdictions, and it aims to eliminate double taxation on income taxes and prevent tax evasion and avoidance between the two nations.
The income tax treaty includes Hong Kong’s profits tax, salaries tax, and property tax, and the Maldives’ income tax.
Withholding tax rates are set at 5-10% for dividends (depending on ownership), and 10% for interest, royalties, and fees for technical, managerial, or consultancy services.
The treaty will take effect after the exchange of ratification instruments and will be applicable in Hong Kong starting 1 April of the year following its enforcement, and from 1 January of the same year in the Maldives.
