Hong Kong and Italy sign tax treaty

DTA has incorporated an article on exchange of information

On 14th January 2013 Hong Kong signed with Italy an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

In the absence of a CDTA, Hong Kong residents receiving interest from Italy are subject to Italy’s withholding tax, which is 20 per cent at present. Under the agreement, such withholding tax will be capped at 12.5 per cent. The Italian withholding tax on royalties, currently at 22.5 per cent, will be capped at 15 per cent. The Italian dividends withholding tax on Hong Kong residents will be reduced from the current rate of 20 per cent to 10 per cent.

The CDTA will come into force after the completion of ratification procedures on both sides.