Does Hong Kong have a tax treaty with Mainland China and Malaysia?
Yes. Hong Kong signed an arrangement with Mainland China on 21 August 2006 and a comprehensive double taxation agreement with Malaysia on 25 April 2012, which took effect in Hong Kong from year of assessment 2013/14. The IRD lists all agreements and their effective dates. Check the treaty text for the rate that applies.
Hong Kong's DTAs mainly allocate taxing rights over income between Hong Kong and the other jurisdiction and provide relief from double tax.
Mainland China. The IRD notes the Arrangement between the Mainland and Hong Kong for the avoidance of double taxation (signed 21 August 2006), which replaced the 1998 arrangement for the relevant taxes.
Malaysia. The Hong Kong-Malaysia DTA was signed on 25 April 2012, entered into force on 28 December 2012 and has effect in Hong Kong from the year of assessment 2013/14. The IRD marks it as modified by the Multilateral Instrument (MLI) and provides a synthesised text.
How to use a treaty
- Check that the other country's treaty is in effect and which taxes it covers.
- Get a Certificate of Resident Status from the IRD if the foreign authority asks for one.
- Claim the reduced rate or exemption under the foreign country's procedures; the treaty text and local law decide the rate, not this answer.
Unilateral relief. The profits tax return also includes an item for foreign tax paid claimed as a unilateral tax credit.
The IRD page lists the current treaties and their effective dates, and the list is updated as new agreements are signed.
Sources
Applies to As at 2026-10-29 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Does a Hong Kong company pay tax on profits earned overseas?Generally no. Profits sourced outside Hong Kong are outside the profits tax charge, even if the company is incorporated here. The exceptions are certain foreign-sourced passive income received in Hong Kong by members of multinational groups under the FSIE regime, and any profits the IRD finds are actually sourced in Hong Kong.
- How does an offshore profits claim work in Hong Kong?An offshore claim says that some or all profits did not arise in or derive from Hong Kong, so they are outside profits tax. You exclude them in the tax computation and report them in the return. The IRD can then make enquiries, and it is up to the taxpayer to prove the source with documents.
- Does it matter where a Hong Kong company's directors make decisions when claiming offshore profits?It is a factor but usually not the deciding one. The IRD and the courts look first at the operations that actually earned the profit and where they took place. The place where day-to-day investment or business decisions are taken is only one factor, so directors abroad do not by themselves make profits offshore.
- What is Hong Kong's FSIE regime for foreign-sourced income?The FSIE regime can tax four types of foreign-sourced passive income when received in Hong Kong by members of multinational groups: dividends, interest, disposal gains and IP income. It started on 1 January 2023, with disposal gains on non-equity assets added from 1 January 2024. Exceptions such as economic substance can keep the income exempt.
- What economic substance do I need to keep foreign dividends or interest exempt under the FSIE rules?A multinational group entity must show adequate substance in Hong Kong in the year the income accrues. A pure equity-holding entity needs adequate human resources and premises and must meet filing duties. Other entities need an adequate number of qualified employees and operating expenditure. The IRD sets no minimum numbers.