Double Taxation Agreement Between India And Hong Kong

April 9, 2021

The Government of the Republic of India and the Government of the Hong Kong Special Administrative Region of the People`s Republic of China who wish to reach an agreement to avoid double taxation and prevent tax evasion with respect to income taxes have agreed that contractual benefits are not granted if the main objective or one of a person`s main objectives is non-taxation or reduction of taxation by evasion. or tax evasion. , including through contractual shopping agreements. This provision is comparable to the TPP rule and the language of the preamble to the BEPS 6 action in the MLI. (2) Where a party relates to the taxable profits of a business of that party and includes the profits of a business of that party – and imposes taxes accordingly – are the profits that would have been generated by the business of the first contracting party if the conditions imposed between the two companies were independent between independent companies. which would have been obtained between independent companies, this other contracting party makes an appropriate adjustment of the amount of tax on those profits. The other provisions of this agreement are duly taken into account when determining this correction and, to that end, the competent authorities of the contracting parties consult, if necessary. On March 19, 2018, Hong Kong signed a comprehensive double taxation agreement (“DTA”) with India-Hongkng (PDF 329 KB) agreement. The DBA will enter into force once both jurisdictions have completed their formal ratification procedures. (c) any other establishment that may be the subject of an agreement from time to time between the competent authorities of the contracting parties. The contract provides for POPs similar to the LML provision.

It states, among other things, that a subject can file an appeal within three years of the first notification of the tax action to a certification body located in his or her country of resident. The Board would cooperate to resolve the matter by mutual agreement, which must be transposed into national legislation, regardless of any limitation over time. and in both cases, conditions different from those that would be achieved between independent companies are imposed or imposed between the two companies in their commercial or financial relations, so that any profits that would be paid to one of the companies, but which have not accumulated as a result of these conditions, can be included in the profits of that business and be taxed accordingly. S.O. 6247 (E)) – On 19 March 2018, an agreement was signed in Hong Kong between the Government of the Republic of India and the Government of the Republic of Hong Kong on the prevention of double taxation and the prevention of income tax evasion, in accordance with the annex of this notification (hereafter referred to as the Convention). This paragraph does not affect the corporation`s taxation on the profits on which the dividends are paid.