Blog

04
jul

UK and China enter in Double Taxation Agreement

Signed, but not in force

A new comprehensive Double Taxation Agreement between the UK and the People’s Republic of China was signed in London on 27 June 2011 by the Foreign Secretary and Mr Yang Jiechi, Minister of Foreign Affairs.

The Agreement generally follows the OECD Model Double Taxation Convention. Important features of the new Agreement include a reduction in the dividend withholding tax rate to 5 per cent (down from 10 per cent) for direct investors; an updated capital gains article and a modern exchange of information article.

The Agreement enters into force once both countries have completed their legislative procedures. The provisions of the Agreement will then take effect from the following year.

surce:hmrc.gov.uk