Hong Kong Signs Double Taxation Agreement with Kyrgyz Republic to Boost Trade and Investment

Hong Kong and Kyrgyz Republic enter into tax pact

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, had an online bilateral meeting today (March 2) with the Minister of Economy and Commerce of the Kyrgyz Republic, Mr Bakyt Tolomushevich Sydykov, and signed on behalf of the Hong Kong Special Administrative Region (HKSAR) Government a comprehensive avoidance of double taxation agreement (CDTA) with the Government of the Kyrgyz Republic.

Mr Hui said, "As stated in the newly announced 2026-27 Budget, we will further expand our CDTA network. This CDTA with the Kyrgyz Republic is the 56th that Hong Kong has concluded, signifying the ongoing achievements of the HKSAR Government's continuous efforts. We will continue to actively seek to sign CDTAs with more tax jurisdictions to enhance the attractiveness of Hong Kong as a business and investment hub and consolidate the city's status as an international economic and trade centre."

At the meeting, Mr Hui presented to Mr Sydykov the advantages of Hong Kong as an international financial centre and its latest developments, including the efforts made to establish Hong Kong as a regional gold reserve hub.

Mr Hui added, "This CDTA sets out the allocation of taxing rights between Hong Kong and the Kyrgyz Republic, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and avoid double taxation. This will create a more attractive business environment for promoting bilateral trade and investment."

In accordance with this CDTA, any tax paid by Hong Kong residents in the Kyrgyz Republic will be allowed as a credit against the tax payable in Hong Kong in respect of the same income in accordance with the provisions of the Inland Revenue Ordinance (Cap. 112) (IRO). In addition, if a Hong Kong company holds at least 20 per cent of the share capital of the dividend-paying company, the Kyrgyz Republic's withholding tax rate on such dividends, currently at up to 10 per cent, will be reduced to 5 per cent; while the maximum withholding tax rate on interest and royalties received by Hong Kong residents, currently at 10 per cent, will be reduced to 8 per cent.

This CDTA will come into force after completion of ratification procedures by both sides. In Hong Kong, the Chief Executive in Council will make an order under the IRO, which will be tabled at the Legislative Council for negative vetting. Details of the CDTA are available on the Inland Revenue Department website.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui (right), and the Minister of Economy and Commerce of the Kyrgyz Republic, Mr Bakyt Tolomushevich Sydykov (left), have an online bilateral meeting today (March 2). Mr Hui presents to Mr Sydykov the advantages of Hong Kong as an international financial centre and its latest developments, including the efforts made to establish Hong Kong as a regional gold reserve hub. Source: HKSAR Government Press Releases

The Secretary for Financial Services and the Treasury, Mr Christopher Hui (right), and the Minister of Economy and Commerce of the Kyrgyz Republic, Mr Bakyt Tolomushevich Sydykov (left), signed on behalf of the Hong Kong Special Administrative Region Government and the Government of Kyrgyz Republic respectively a comprehensive avoidance of double taxation agreement today (March 2). Photo shows Mr Hui and Mr Sydykov at the signing ceremony. Source: HKSAR Government Press Releases

The Secretary for Financial Services and the Treasury, Mr Christopher Hui (right), and the Minister of Economy and Commerce of the Kyrgyz Republic, Mr Bakyt Tolomushevich Sydykov (left), sign on behalf of the Hong Kong Special Administrative Region Government and the Government of Kyrgyz Republic respectively a comprehensive avoidance of double taxation agreement today (March 2). Source: HKSAR Government Press Releases

Man sentenced to two months' imprisonment for illegally importing alternative smoking products

A man was sentenced today (March 2) at the West Kowloon Magistrates' Courts to two months' imprisonment for illegally importing alternative smoking products, including 32 000 heat sticks and 40 heated tobacco devices. The Department of Health (DH) welcomed the verdict and reminded members of the public and visitors not to bring alternative smoking products such as e-cigarettes, heated tobacco products or herbal cigarettes into Hong Kong, and not to use any alternative smoking products.

The Tobacco and Alcohol Control Office (TACO) of the DH was notified by Hong Kong Customs on February 28 that 32 000 heat sticks and 40 heated tobacco devices had been intercepted in the luggage of the aforesaid man arriving from Japan. TACO immediately arrested and prosecuted the individual.

Since the amendments to theTobacco Control Legislation (Amendment) Ordinance 2025, which conferred arrest powers on TACO inspectors,took effect on September 19, 2025, TACO has prosecuted 16 cases involving importation of large quantities of alternative smoking products. Eighteen persons have been convicted and sentenced to prison terms ranging from two to six months.

According to the Import and Export Ordinance (Cap. 60), a person who imports alternative smoking products, including electronic smoking products, heated tobacco products and herbal cigarettes, commits an offence and isliable on summary conviction to a fine of $500,000 and imprisonment for two years; or liable on conviction on indictment to a fine of $2 million and imprisonment for seven years.

Under the Smoking (Public Health) Ordinance (Cap. 371), no person may promote, manufacture, sell, or possess for commercial purposes alternative smoking products. An offender is liable to a fine of $50,000 and imprisonment for six months.

TACO will continue to closely monitor and enforce the law to combat related offences.

In addition, the DH also cautions the public that alternative smoking products are addictive and are not effective smoking cessation tools. E-cigarettes may increase the risk of cancer, respiratory diseases, and cardiovascular diseases. Smokers are urged to quit smoking as early as possible for their own health and that of others. For assistance, please call the DH's Integrated Smoking Cessation Hotline on 1833 183, and or visitwww.livetobaccofree.hkfor information on quitting.