On 9 October 2019, the Hong Kong’s Chief Executive in Council made an order under the Inland Revenue Ordinance (Cap. 112) to implement the Comprehensive Avoidance of Double Taxation Agreement with Estonia (Estonia CDTA) that was signed on 25 September 2019. The order has been gazetted on October 11.
Under the agreement investors will not have to pay tax twice on a single source of income. It will bring tax savings and a greater certainty on taxation liabilities for the residents of both sides when they engage in cross-border trade and investment activities.
The agreement will enter into force after both Hong Kong and Estonia have completed the ratification procedures.
