The updated contract reduced the withholding tax from 20% to 15% for Hong Kong residents who received dividends from uk real estate investment trusts. In addition, withholding tax is limited to 3% for Hong Kong residents who collect royalties and interest from the United Kingdom, instead of the non-contract rate of 20%. The Hong Kong CDTA in the United Kingdom replaces existing limited double taxation agreements for airline revenues and shipping revenues. The agreement was also the first Hong Kong DBA to be signed using the Organisation for Economic Co-operation and Development standard for the exchange of tax information. China In some cases, individuals may invoke tax breaks, but the amount of relief you receive depends on the DBA agreement between the UK and your income`s country of origin. The situation becomes more complicated when tax rates vary from country to country. So what`s going on? To further understand the double taxation convention, we gave a typical example: the agreement signed in 1998 to avoid double taxation of income and the prevention of tax evasion broadens the scope of the original agreement on corporate profits and personal services revenues. The agreement also plays a role in protecting the Treasury by adopting provisions to combat tax evasion and evasion, in part through measures to exchange information between tax authorities. All recent UK double taxation conventions largely follow the Organisation for Economic Co-operation and Development`s (OECD) approach to income and capital tax model. The agreements for the College continue this approach. “The conclusion of a comprehensive double taxation agreement with the continent, as well as the closer economic partnership agreement on the mainland and in Hong Kong, will further encourage international investors to enter the continental market via Hong Kong. In addition, cross-border financing agreements and the transfer of technical know-how and patents between the two sites will be improved.