Hong Kong's Comprehensive Avoidance of Double Taxation Agreement with Türkiye Enters into Force

The Comprehensive Avoidance of Double Taxation Agreement (CDTA) between Hong Kong and Türkiye entered into force on January 30, 2025.Signed in September 2024, the agreement will apply to Hong Kong tax for years of assessment beginning on or after April 1, 2027.

Key benefits include capped withholding tax rates on dividends (5%–10%), interest, and royalties (7.5%–10%). Furthermore, Hong Kong airlines and shipping operations will enjoy tax exemptions on profits earned in Türkiye. This marks Hong Kong’s 51st CDTA in force, reinforcing Hong Kong’s status as a global investment hub and strengthening economic connectivity with Türkiye.

The entry into force of the agreement carries significant strategic implications. On one hand, by reducing tax costs and enhancing certainty and transparency for cross-border investment and trade, it helps attract greater two-way investment flows. On the other hand, under the Belt and Road Initiative framework, Türkiye’s role as a strategic bridge between Europe and Asia makes enhanced tax cooperation with Hong Kong particularly valuable, facilitating regional supply chain integration and financial collaboration while enabling enterprises to leverage Hong Kong as a platform to expand into Türkiye and neighboring markets.

https://www.info.gov.hk/gia/general/202601/30/P2026012900461.htm

https://www.info.gov.hk/gia/general/202409/24/P2024092400231.htm