On 29 December 2015, the protocol to the 2006 income tax arrangement between China and Hong Kong entered into force. The protocol, signed 1 April 2015, is the third to amend the arrangement. The protocol:
- Replaces paragraph 1 of Article 8 (Shipping, Air and Land Transport), clarifying that the tax exemption for income from operation of ships, aircraft or land transport also includes exemption from value added tax and other similar taxes;
- Reduces the withholding tax on royalties paid to aircr…