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Hong Kong to Start Free Trade Negotiations with Australia

Written by: Editor

Hong-Kong-to-Start-Free-Trade-Negotiations-with-Australia.jpgThe Hong Kong Government entered a new negotiation phase for a free trade agreement with Australia. The two jurisdictions have been negotiating the areas that should be covered by such a treaty and plan on starting the negotiations. Some of the most important changes, ones that could determine Australian investors to open a Hong Kong company, would include some tax changes and eliminations.
 

The free trade agreement with Australia

 
Hong Kong officials announced that the negotiations with their Australian counterparts for the conclusion of a free trade agreement would start in a short amount of time. The Special Administrative Region has been looking for possible areas that should be covered by such a treaty. The negotiations for the agreement will include topics like the elimination of export tariffs applied by Australia which currently have a rate of 2.5 percent. the Hong Kong Trade and Industry Department has also suggested that the negotiations should include issues like access for services, customs facilitation and the promotion of investments.
 
Hong Kong does not impose tariffs on exports and has a low and easy taxation regime. This is one of the reasons why many foreign investors find that company formation in Hong Kong is accessible. 
 

Hong Kong – Australia business relations

 
Hong Kong has concluded double tax treaties with a number of countries and officials plan to expand the list of jurisdictions in the future. A double tax treaty with Australia would allow investors and individuals from Australia living and working in Hong Kong to stop paying the Australian tax on their foreign income (as they would be temporarily located in Hong Kong).
 
A double tax treaty would restrict the taxes imposed on tax residents from both jurisdictions and could encourage cross-border businesses.
 
As of now, Hong Kong has signed double tax treaties with China, countries in the ASEAN association like Singapore, Malaysia or the Philippines and New Zealand.
 
Our experts in company formation in Hong Kong can give you more details about the current taxation regime for foreign investors in the city.
 
You can contact us if you have questions about how an Australian branch is taxed in Hong Kong.
 
 

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