Hong Kong-Armenia tax treaty to ease investor tax assessment

The pact will also expand Hong Kong's tax treaty network.

Hong Kong signed a comprehensive avoidance of double taxation agreement (CDTA) with Armenia to expand the city's tax treaty network, particularly with Belt and Road Initiative tax jurisdictions.

The CDTA clarifies how taxes will be allocated between Hong Kong and Armenia, aiding investors in evaluating potential tax obligations for cross-border economic activities.

Under the CDTA, Hong Kong companies can receive double taxation relief by crediting tax paid in Armenia against their Hong Kong tax liability for the same income, subject to Hong Kong tax laws.

Additionally, Armenia will cap its withholding tax rate for Hong Kong residents at 0% or 5% on dividends based on their shareholdings, and at 5% on interest and royalties.