Hong Kong’s Chief Executive in Council made an order on 20 May 2020 under the Inland Revenue Ordinance (Cap. 112) to implement the Comprehensive Avoidance of Double Taxation Arrangement (CDTA) with Macao. The order was gazetted on 22 May and tabled at the Legislative Council on 27 May for negative vetting.
“Under the Macao CDTA, investors will not have to pay tax twice on a single source of income. It will bring tax savings and greater certainty on taxation liabilities for the residents of both sides when they engage in cross-boundary trade and investment activities,” a Hong Kong government spokesman said.
The Macao CDTA was signed in November 2019 and is the 43rd comprehensive avoidance of double taxation agreement/arrangement signed by Hong Kong. It will enter into force after both sides have completed the ratification procedures.