Secretary for Financial Services & the Treasury Christopher Hui held a bilateral meeting in Hong Kong today with Rwanda’s Minister of Finance & Economic Planning Yusuf Murangwa, and signed on behalf of the Hong Kong Special Administrative Region Government a comprehensive avoidance of double taxation agreement (CDTA) with the Rwandan government.

Under the CDTA, any tax paid in Rwanda by Hong Kong residents will be allowed as a credit against tax payable in Hong Kong in respect of the same income, subject to the provisions of the Inland Revenue Ordinance.

Moreover, Rwanda’s withholding tax rates for Hong Kong residents on dividends, interest, royalties and fees for technical services, currently at up to 15%, will be reduced to a range of 7.5% to 10%.

At the meeting, Mr Hui outlined to the Rwandan official Hong Kong’s dual strengths as a super connector and a super value-adder. The two men discussed further collaboration to drive high-quality development along the Belt & Road.

Mr Hui commented: “The CDTA demonstrates Hong Kong’s continuous efforts in deepening co-operation with Belt & Road economies, and is also a significant milestone in promoting the financial, economic and trade connections between Hong Kong and Rwanda.”

He also highlighted that the CDTA sets out a clear allocation of taxing rights between Hong Kong and Rwanda, which will enable investors to better assess their potential tax liabilities from cross-border economic activities.

“This will be conducive to creating a more favourable and attractive business environment, thus promoting bilateral trade and investment.”

Additionally, Mr Hui stated that the Hong Kong SAR Government will continue to expand Hong Kong’s CDTA network to enhance the city’s attractiveness as a business and investment hub, and to consolidate its status as an international financial and trade centre.

The Hong Kong-Rwanda CDTA is the 54th such pact that Hong Kong has concluded. It will come into force after completion of ratification procedures by both sides.

In Hong Kong, the Chief Executive in Council will, under the Inland Revenue Ordinance, make an order which will be tabled at the Legislative Council for negative vetting.