The Fifth Protocol introduces a new Tiebreaker rule for a person`s double stay (defined by the DBA as an individual, a company, a trust, a partnership or other groups). If a person other than a person is established in both jurisdictions, the territorial authority of both parties (China State Taxation Administration and Hong Kong Inland Revenue Department) must agree on the place of residence, taking into account the place of effective administration, place of creation and other relevant factors. The agreement was also the first Hong Kong DBA to be signed using the Organisation for Economic Co-operation and Development standard for the exchange of tax information. China China Briefing is written and produced by Dezan Shira – Associates. The practice supports foreign investors in China and has since 1992 by offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen and Hong Kong. Please contact the support company in China at china@dezshira.com. In addition to our practices in India and Russia and in our commercial research centres along the Belt-Road initiative, we also have subsidiaries that support foreign investors in Vietnam, Indonesia, Singapore, the Philippines, Malaysia and Thailand. On 21 August 2006, the two sides signed a broader agreement entitled “Agreement between mainland China and the Hong Kong Special Administrative Region to avoid double taxation and the prevention of income tax evasion” (comprehensive agreement). The comprehensive agreement expanded income coverage by adding up income from real estate, related companies, dividends, interest, royalties, capital income, pensions and utilities, etc.

Arbitration Centre, or “HKIAC”), which is recognized as the leading provider of dispute resolution services in Asia. However, Hong Kong was not considered the ideal location for the installation of a regional headquarters in Asia. Prior to 2010, Hong Kong concluded only comprehensive double taxation agreements and conventions (“DBA”) with five jurisdictions, namely mainland China, Belgium, Luxembourg, Thailand and Vietnam. However, following the G20 summit in 2009, the Hong Kong government was under pressure to conclude more tax agreements to support international efforts to improve tax transparency. As of August 1, 2012, Hong Kong has made considerable progress in expanding its contract network, with the signing of 25 full DBAs and the negotiation of a number of DBAs.