Due to the international nature of shipping operations, shipping operators are more susceptible to double taxation than other taxpayers. It is therefore the Hong Kong Special Administrative Region Government's (HKSARG) objective to make arrangements with its trading partners for the avoidance of double taxation on income derived from international shipping operation. Such arrangements reduce the overall tax burden of ship operators of Hong Kong and the trading partners, thereby improving their international competitiveness. This will also help enhance Hong Kong's position as an international maritime centre.
Double taxation relief arrangements may take one of the following forms:
- Reciprocal tax exemption (RTE): Section 23B of the Inland Revenue Ordinance provides for reciprocal tax exemption for shipping income, so that ship operators can benefit from the tax relief offered by places with similar reciprocal tax exemption legislation.
- Agreement for the avoidance of double taxation (DTA) covering
shipping income: A bilateral agreement to provide for profits derived from the operation of ships in international traffic by a shipping enterprise of one contracting party to be exempted from taxes in the other contracting party on a reciprocal basis. In other words, it is an agreement to relieve shipowners of the burden of double tax.
- Comprehensive DTA (CDTA): A bilateral agreement/arrangement that provides relief from double tax to all types of income including shipping income.
Hong Kong has made double taxation relief arrangements with 30 tax administrations:
| DTA |
| |
 |
 |
 |
 |
|
| |
Denmark |
Germany |
Netherlands |
Norway |
|
| |
 |
 |
 |
 |
|
| |
Singapore |
Sri Lanka |
United
Kingdom |
United
States |
|
| RTE |
| |
 |
 |
 |
| Chile |
New Zealand |
Republic
of Korea |
|
|
| CDTA |
| |
 |
 |
 |
 |
 |
 |
| Austria |
Belgium |
Brunei |
Czech Republic |
France |
Hungary |
 |
 |
 |
 |
 |
 |
| Indonesia |
Ireland |
Japan |
Kuwait |
Liechtenstein |
Luxembourg |
 |
 |
|
|
 |
 |
| Mainland China |
Malta |
Netherlands |
New Zealand |
Portugal |
Spain |
 |
 |
|
 |
|
|
| Switzerland |
Thailand |
United Kingdom |
Vietnam |
|
|
|
|
The details are as follows:
| DTA / RTE on Shipping Income |
| Country |
Date of Signature of Arrangement |
Date of Entry into force |
Text |
| USA |
01.08.1989
16.08.1989 |
16.08.1989 |
Text |
| United Kingdom |
25.10.2000 |
03.05.2001 |
Text |
| Netherlands |
02.11.2000 |
17.10.2001 |
Text |
| Germany |
13.01.2003 |
17.01.2005 |
Text |
| Norway |
16.10.2003 |
11.01.2005 |
Text |
| Singapore |
28.11.2003 |
30.12.2004 |
Text |
| Sri Lanka |
26.03.2004 |
30.03.2005 |
Text |
| Denmark |
09.12.2004 |
16.12.2005 |
Text |
| New Zealand |
--- |
01.04.1998 |
--- |
| Republic of Korea |
--- |
1998/1999 |
--- |
| Chile |
--- |
01.12.2010 |
--- |
| Country |
Date of Signature of Arrangement |
Date of Entry into force |
Text |
| Mainland China |
11.02.1998 |
10.04.1998 |
Text |
| 21.08.2006 |
08.12.2006 |
Text |
| 30.01.2008 |
11.06.2008 |
Text |
| 27.05.2010 |
20.12.2010 |
Text |
| Belgium |
10.12.2003 |
07.10.2004 |
Text |
| Thailand |
07.09.2005 |
07.12.2005 |
Text |
| Luxembourg |
02.11.2007 |
20.01.2009 |
Text |
| 11.11.2010 |
17.08.2011 |
Text |
| Vietnam |
16.12.2008 |
12.08.2009 |
Text |
| Brunei |
20.03.2010 |
19.12.2010 |
Text |
| Netherlands |
22.03.2010 |
24.10.2011 |
Text |
| Indonesia |
23.03.2010 |
Awaiting notification |
Text |
| Hungary |
12.05.2010 |
23.02.2011 |
Text |
| Kuwait |
13.05.2010 |
Awaiting notification |
Text |
| Austria |
25.05.2010 |
01.01.2011 |
Text |
| United Kingdom |
21.06.2010 |
20.12.2010 |
Text |
| Ireland |
22.06.2010 |
10.02.2011 |
Text |
| Liechtenstein |
12.08.2010 |
08.07.2011 |
Text |
| France |
21.10.2010 |
01.12.2011 |
Text
|
| Japan |
09.11.2010 |
14.08.2011 |
Text |
| New Zealand |
01.12.2010 |
09.11.2011 |
Text |
| Switzerland |
06.12.2010 |
Awaiting notification |
Text |
| Portugal |
22.03.2011 |
Awaiting notification |
Text |
| Spain |
01.04.2011 |
Awaiting notification |
Text |
| Czech Republic |
06.06.2011 |
Awaiting notification |
Text |
| Malta |
08.11.2011 |
Awaiting notification |
Text |
|
