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Fifth Protocol to Avoidance of Double Taxation Arrangement between Mainland China and Hong Kong Came into Force
On 6 December 2019, the amending protocol to the Mainland of China - Hong Kong Income Tax Agreement (2006), as amended by the 2008, 2010 and 2015 protocols, entered into force. The protocol generally applies from 1 January 2020 for Mainland China and from 1 April 2020 for Hong Kong.
The Fifth Protocol to the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income ("the Fifth Protocol") was formally signed on 19 July 2019.
According to Article 7 of the Fifth Protocol, the Fifth Protocol shall, upon the written notifications by both Sides of the completion of their respective required approval procedures, enter into force on the date of the later of these notifications.
Source: HKSAR Announcements
The Fifth Protocol to the Arrangement was signed in July this year. It incorporates into the Arrangement a new teachers and researchers article to provide tax relief to eligible Hong Kong and Mainland teachers and researchers working on the other side, as well as measures to prevent tax treaty abuse to ensure that the Arrangement follows the latest international tax standard. It came into force on December 6, 2019, after completion of approval procedures on both sides. It will apply in Hong Kong to income derived in the years of assessment beginning on or after April 1, 2020.
Source: HKSAR Announcements