Tax Treaty Between Hong Kong and Canada Ratified

The income tax treaty that was first signed on November 11, 2012 between Hong Kong and Canada (the Treaty) was officially ratified and declared in force as of October 29, 2013.

Like the objectives of most tax treaties, this one encourages cross-border investment and allows businesses and investors to determine their tax liabilities with increased certainty, while also provide protection against tax discrimination and double taxation.

For Canadian purposes, the Treaty will take effect for tax years beginning January 1, 2014. For Hong Kong, the Treaty will affect tax years beginning on or after April 1, 2014.