The Hong Kong government has announced that a protocol to the 2006 income tax arrangement between Hong Kong and China was signed on 1 April 2015. The protocol is the third to amend the arrangement. The protocol:
- Reduces the withholding tax imposed by Mainland China on royalties paid to aircraft and ship leasing businesses from 7% to 5%,
- Sets out that gains derived by a Hong Kong resident from the sales and purchase of shares in a Mainland China listed company shall be taxable only in Hong Ko…