Hong Kong yesterday signed a comprehensive avoidance of double taxation agreement (CDTA) with Bahrain.

Under the pact, Hong Kong companies can enjoy double taxation relief in that any tax paid in Bahrain, whether directly or by deduction, in accordance with the CDTA will be allowed as a credit against the tax payable in Hong Kong in respect of the same income, subject to the provisions of Hong Kong’s tax laws.

Secretary for Financial Services & the Treasury Christopher Hui said that Bahrain is one of the economies participating in the Belt & Road Initiative and he has confidence the agreement will further promote economic and trade connections between Hong Kong and Bahrain.

He added that the pact will also offer additional incentives for the business sectors of both sides to do business or make investments.

Additionally, Hong Kong will continue to negotiate with trading and investment partners with a view to expanding its CDTA network, so as to enhance the attractiveness of Hong Kong as a business and investment hub and consolidate the city's status as an international economic and trade centre.

This CDTA is the 49th agreement that Hong Kong has concluded.

Secretary for Commerce & Economic Development Algernon Yau, who was on an official visit to Manama, signed the CDTA with Bahrain on behalf of the Hong Kong Special Administrative Region Government.

Click here for details of the CDTA