The Hong Kong Special Administrative Region government and the Kyrgyz Republic signed on Monday an agreement to avoid double taxation in an effort to promote trade and investment.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu and Minister of Economy and Commerce of the Kyrgyz Republic Bakyt Tolomushevich Sydykov signed the comprehensive avoidance of double taxation agreement (CDTA) during an online bilateral meeting.
“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,” Hui said.
“This will create a more attractive business environment for promoting bilateral trade and investment.”
Under the 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.
If a Hong Kong company holds at least 20 percent of the share capital of the dividend-paying company, the Kyrgyz Republic’s withholding tax rate on such dividends, currently at up to 10 percent, will be reduced to 5 percent.
ALSO READ: InvestHK explores new opportunities in Central Asia under BRI
The maximum withholding tax rate on interest and royalties received by Hong Kong residents, currently at 10 percent, will be also reduced to 8 percent.
“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,” Hui said.
“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 center.”
During the meeting, Hui informed Sydykov about the advantages of Hong Kong as an international financial center and the latest developments in the city, including the efforts to establish Hong Kong as a regional gold reserve hub.
The CDTA will take effect once it is ratified both sides.
