Order on Comprehensive Avoidance of Double Taxation Agreement with Mauritius to be gazetted

The Hong Kong government has published a press release to announce that a new double taxation order to implement the double taxation agreement between Hong Kong and the Republic of Mauritius signed in November 2022 will soon be tabled at the Legislative Council for negative vetting. To recall, the agreement provides relief with regard to double taxation on income and on capital earned in each of the two countries (please also see EventID 18228 in this context for more information).
Specifically, pursuant to the enclosed annex, the order will provide that
– taxes withheld in Mauritius will be credited towards taxes to be paid in Hong Kong on the same taxable source of income (for companies);
– Hong Kong residents employed in Mauritius will be exempt from Mauritius income tax subject to certain conditions;
– interest and loyalty income of Hong Kong residents derived from investments in Mauritius will be taxed at a rate of 5% in Mauritius; and
– profits from international shipping activities „arising in Mauritius will not be taxed in Mauritius.“