Hong Kong and Slovenia signed a double taxation agreement and many withholding tax rates were lowered 

The Zhitong Finance App learned that Hong Kong's Secretary for Treasury, Xu Zhengyu, held a bilateral meeting with the Ambassador of the Republic of Slovenia to China Ma Boyang in Hong Kong today (September 4) and signed a comprehensive agreement (agreement) on behalf of the Hong Kong Special Administrative Region (SAR) government and the Slovenian government. According to the agreement, all taxes paid by Hong Kong residents in Slovenia can be deducted from taxes levied in Hong Kong on the same income in accordance with the Inland Revenue Ordinance (Chapter 112). Furthermore, Slovenia's withholding tax rate on dividends levied on Hong Kong residents will be reduced from the current maximum of 25% to a maximum of 10%, while the withholding tax rate on interest and royalties will also be reduced from the current maximum of 25% to 5%.

Hui Ching-yu said, “This is the 60th agreement in Hong Kong, the 15th signed by the current government, and the fifth this year. It marks a new milestone in the HKSAR Government's active expansion of the agreement network.”

“Slovenia is an important trading partner of Hong Kong in Europe and a participant in the Belt and Road Initiative. In September of last year, I went to Slovenia to discuss signing the agreement between the two places as soon as possible, and received a positive response from the country's government, which led to the formal signing of the agreement between the two sides today. The agreement clarifies the taxation rights of the two regions, so that investors can more effectively assess the potential tax burden of their cross-border economic activities, avoid double taxation, and promote bilateral trade and investment.”

“The Treasury Bureau is also actively following up on the agreement reached during the Chief Executive's visit to Central Asia in June this year to strengthen cooperation. We have completed negotiations with Kazakhstan on the agreement, which will be signed after the two parties have completed internal procedures. We will also be holding consultations with Uzbekistan within this year.”

At a bilateral meeting, Xu Zhengyu introduced Hong Kong's latest developments as an international financial center, including ranking among the world's top in terms of cross-border wealth management, international competitiveness and tax policies, and the SAR government's efforts to develop Hong Kong into a global gold trading, clearing and reserve hub.

The agreement will enter into force after both parties have completed the relevant ratification procedures. In the case of Hong Kong, the Chief Executive, together with the Executive Council, makes an order on the agreement under the Inland Revenue Ordinance. The order will be submitted to the Legislative Council through a review procedure.