Foreign tax relief
As a relief from double taxation, unilateral income exemption is available for employment income derived from services rendered outside Hong Kong and where tax similar to the nature of Hong Kong salaries tax has been charged and paid on that income in the territory in which the services are rendered. Technically, this income exemption applies to both Hong Kong and non-Hong Kong employment. However, such exemption is practically not applicable to taxpayers with a non-Hong Kong employment as only income of services rendered in Hong Kong is taxable in cases of non-Hong Kong employment.
A foreign tax credit is available to Hong Kong tax residents in respect of income derived from and taxable in a jurisdiction that has entered into a DTA with Hong Kong and the same income is subject to tax in Hong Kong.
Currently, Hong Kong has entered into 38 tax treaties with different jurisdictions as shown in the following table.
||Saudi Arabia (3)
|China, the People's Republic of (1)
||South Africa (1)
|Czech Republic (1)
||United Arab Emirates (1)
||United Kingdom (1)
||New Zealand (1)
- Ratified and effective.
- Ratified and will be effective from year of assessment 2018/19.
- Not yet ratified.
Hong Kong has not entered into any social security agreements with any jurisdictions as there is no social security tax in Hong Kong.
Estate and gift tax conventions
Hong Kong has not entered into any estate and gift tax conventions because the estate duty was abolished in 2006 and it does not have a gift tax.
Tax information exchange agreements (TIEAs)
Currently, Hong Kong has entered into seven TIEAs with different jurisdictions as shown in the following table.
All of the above TIEAs are ratified and effective.
In addition to the signing of the HK-United States (US) TIEA in March 2014, Hong Kong signed a Model 2 intergovernmental agreement (IGA) with the United States in November 2014 to facilitate financial institutions in Hong Kong to comply with the Foreign Account Tax Compliance Act (FATCA).