On 19 March 2018, India and the Hong Kong Special Administrative Region (HKSAR) signed an agreement on double tax evasion (DBAA) in China. 2. When a party complies with the profits on which a business of that party is subject to tax, and it introduces the profits of a business of that contracting party – and imposes taxes accordingly – and if the conditions imposed between the two parties had been between the two independent enterprises and which would have been carried out between independent companies and which would have been carried out between independent companies. , this other party makes an appropriate adjustment to the amount of tax on these profits. The other provisions of this agreement are duly taken into account when determining this correction and, to that end, the competent authorities of the contracting parties consult, if necessary. (d) if he has the right to stay in the Hong Kong Special Administrative Region and is also a national of India, or if he is not entitled to stay in the Hong Kong Special Administrative Region or is not a national of India, the competent authorities of the parties are trying to clarify the matter by mutual agreement. In the absence of such an agreement, it is not entitled to the exemption or exemption from the exemption provided by the convention, unless the competent authorities of the contracting parties exempt any possible exemption. Contractual benefits are not granted when the main purpose or one of the main purposes of individuals is non-taxation or reduced taxation by tax evasion or evasion, including through contractual shopping agreements. This provision is comparable to the TPP rule and the language of the preamble to the BEPS 6 action in the MLI. Passive income streams such as dividends, interest, royalties and the FTT are generally taxable in the country of residence. These incomes can also be taxed in the country of origin with a tax rate of 5% on dividends and 10% on interest, royalties and FTT on a gross basis.2 If these incomes are actually linked to an EP in the country of origin, Article 7 governs taxation on a net basis.
On November 30, 2018, the Income Tax Agreement between Hong Kong and India (Treaty) signed on March 19, 2018.1 The contract enters into force for fiscal years beginning April 1, 2019 or after April 1, 2019. 3. The term „dividends“ used in this article refers to income from shares or other rights other than receivables that participate in profits and income from other rights of companies subject to the same tax treatment as share income, according to the laws of the party whose distribution is established. 1. The provisions of this agreement do not in any way prevent a contracting party from applying the provisions of its domestic law and measures relating to tax evasion or evasion, whether or not they are designated as such. (i) „person“: a person, a corporation, a trust, a partnership and any other entity of persons treated as a taxable entity under the tax legislation in force in the contracting parties; 2. The competent authority endeavours to resolve the matter by mutual agreement with the competent authority of the other party, by mutual agreement, where the objection appears to be well founded and is not itself in a position to find a satisfactory solution to resolve the matter by mutual agreement with the competent authority of the other party, in order to avoid tax evasion which is not in accordance with the agreement.