Hong Kong, Austria Sign Tax Treaty

May 27 – In the latest of a string of trade deals organized by the Hong Kong government, the Chinese special administrative region signed a trade agreement with Austria on Tuesday that will remove double taxations between the two areas and reduce taxes in a number of sectors.

Before the most recent tax treaty was signed, Hong Kong trading companies operating in Austria were taxed in both places if their income originated in Hong Kong. Companies can now deduct taxes paid in Austria from those owed in Hong Kong. Residents of the Asian island region also no longer have to pay taxes on profits earned from international shipments originating in Austria.

Since the Organization for Economic Cooperation and Development requested the city-state incorporate new transparency standards, Hong Kong has signed 11 new trade agreements across the globe since the end of March. So far, Hong Kong has signed treaties with Belgium, Brunei, Indonesia, Hungary, Kuwait, Luxembourg, the Netherlands, New Zealand, Thailand, Vietnam, and now Austria. The government doesn’t plan to stop there, and has plans for several similar agreements in progress.