An update from the Hong Kong Inland Revenue Department reports that Hong Kong and Rwanda officials concluded the initial round of negotiations for an income tax treaty on 22 November 2024.
The resulting treaty would be the first of its kind between the two jurisdictions and must be completed, signed, and ratified before it can take effect.
A tax treaty is a bilateral agreement between two countries designed to address issues related to the double taxation of both passive and active income earned by their respective citizens. These treaties typically specify the extent to which each country can tax a taxpayer’s income, capital, estate, or wealth. An income tax treaty is also referred to as a Double Tax Agreement (DTA).
