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
