The Hong Kong Inland Revenue Department has announced that representatives from Hong Kong and Rwanda will begin their inaugural round of income tax treaty negotiations from 18 – 22 November 2024.
A tax treaty is a bilateral agreement between two countries designed to address issues related to double taxation on both passive and active income earned by their citizens. These treaties typically establish 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).
If an agreement is reached, it must be finalised, signed, and ratified before it can come into effect.
