The comprehensive avoidance of double taxation agreement with Serbia signed in August came into force on December 30, the Government announced today.

The agreement will have effect in respect of Hong Kong tax from April 1 next year, it said.

Serbia participates in the Belt & Road initiative. It was Hong Kong’s 89th largest trading partner in 2019.

The agreement will bring a greater degree of certainty on tax liabilities for those who engage in cross-border business activities, and promote bilateral trade and investment activities.