Hong Kong
International Tax

The Hong Kong SAR and mainland China signed the Arrangement for the Avoidance of Double Taxation on Income and Prevention of Fiscal Evasion. The Arrangement is expected to reduce the tax burden of Hong Kong companies doing business and investing on the mainland. But the provision for the exchange of information between the tax-collection authorities may be a source of concern, because many companies with mainland operations tended to tell "different stories to different tax authorities".