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HK, Serbia sign tax pact

The Government today said Hong Kong has signed a comprehensive avoidance of double taxation agreement (CDTA) with Serbia, signifying its sustained efforts in expanding the city?s tax treaty network.


Signing the agreement on behalf of the Government, Secretary for Financial Services & the Treasury Christopher Hui said Serbia is one of the emerging economies taking part in the Belt & Road Initiative, which brings about vast business opportunities.


?The agreement will promote economic and trade connections between Hong Kong and Serbia, and offer additional incentives for the business sector of both sides to do business or make investments.?


This is the 44th CDTA that Hong Kong has concluded. It sets out the allocation of taxing rights between the two jurisdictions and will help investors better assess their potential tax liabilities from cross-border economic activities.


Double taxation will be avoided in that any tax paid in Serbia by Hong Kong companies under the agreement will be allowed as a credit against the tax payable in Hong Kong on the same income, subject to the provisions of the tax laws of Hong Kong.


Likewise, for Serbian companies, the tax paid in Hong Kong will be allowed as a deduction from the tax payable on the same income in Serbia.


The agreement also provides tax relief arrangements.


It will come into force after both sides complete ratification procedures.

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