Hong Kong and Norway signed a tax treaty on December 16 in Beijing.
Under the tax treaty, any tax paid by Hong Kong residents in Norway will be allowed as a credit against the tax payable in Hong Kong in respect of the same income. Norway’s withholding tax rate for Hong Kong residents on dividends, currently at up to 25 percent, will be reduced to five percent or 15 percent, depending on the shareholding percentage.
Hong Kong Secretary for Financial Services and the Treasury, Christopher Hui, said: “The tax treaty sets out the allocation of taxing rights between Hong Kong and Norway, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and enjoy avoidance of double taxation. It is envisaged that this tax treaty will create a more attractive business environment for the two places.”
The tax treaty will come into force after completion of ratification procedures by both sides.