2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is unable to find a satisfactory solution itself, to resolve the matter by mutual agreement with the competent authority of the other Party with a view to tax evasion which is not in conformity with the Agreement. Any agreement concluded shall be implemented in the domestic law of the Contracting Parties, irrespecting any time limits. The DTAA provides double taxation protection to more than 1,500 Indian companies operating in Hong Kong and Hong Kong. The contract provides for map similar to the provision of the MLI. In particular, it is stated that a taxable person may submit his case to a CA in his country of residence within three years of the first notification of the taxed tax measure. The CA would cooperate to resolve the case through mutual agreement that would be implemented in national laws, regardless of any time frames. According to the Organisation for Economic Co-operation and Development (OECD) model contract, the residency status of a person other than the individual is determined by the mutual agreement procedure (MAP), based on the place of actual management, the place of creation or incorporation and all other relevant factors. This provision follows the OECD Multilateral Instrument (MFI). In the absence of POPs, dual countries are not entitled to tax relief or exemptions within the meaning of the Treaty, unless this can be agreed by the competent authorities (CAs).
Passive income streams such as dividends, interest, royalties and FTTs are generally taxable in the country of residence. This income can also be taxed in the home country with a tax rate of 5% on dividends and 10% on interest, royalties and FTTs on a gross basis.2 If this income is effectively linked to an EP in the home country, Article 7 governs net taxation. The Government of the Republic of India and the Government of the Hong Kong Special Administrative Region of the People`s Republic of China have agreed to conclude an Agreement for the avoidance of double taxation and the prevention of tax evasion on income: 4. The Agreement shall also apply to all identical or substantially similar taxes which, after the date of signature of the agreement, the existing taxes and all applicable taxes are added or replaced. the other fees referred to in paragraphs 1 and 2 which a Contracting Party may levy in the future. The competent authorities of the Contracting Parties shall inform each other of any substantial changes to their respective tax legislation. On March 19, 2018, India and the Hong Kong Special Administrative Zone of China (HKSAR) signed a double taxation agreement (DTAA). At the time of signing the Agreement between the Government of the Hong Kong Special Administrative Region of the People`s Republic of China and the Government of the Republic of India on the Prevention of Double Taxation and the Prevention of Tax Evasion in Taxes on Income (the “Agreement”), the two Governments agreed on the following provisions which form an integral part of the Agreement: 3. .