Cyprus and Hong Kong have signed a convention aimed at eliminating double taxation on income and strengthening measures against tax evasion and tax avoidance.
The agreement was signed in Hong Kong on Friday between the Government of the Republic of Cyprus and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China, according to an announcement by the Ministry of Finance.
On behalf of Cyprus, the convention was signed by Koula Sophianou, Cyprus’ Ambassador to the People’s Republic of China. She was accompanied by Cyprus’ Honorary Consul in Hong Kong, Dr Harindarpal Singh Banga. Hong Kong was represented by Christopher Hui, Secretary for Financial Services and the Treasury.
The Ministry of Finance said the convention establishes a modern and reliable framework for tax cooperation between the two jurisdictions. It is expected to facilitate business activity, support investment flows and strengthen commercial exchanges.
The agreement is also intended to reduce the overall tax burden for cross-border activity, while ensuring that the framework does not create opportunities for tax evasion or avoidance.
According to the ministry, the convention provides clearer tax treatment for transactions between Cyprus and Hong Kong, offering greater certainty and stability for investors. It also includes provisions for the exchange of tax information between the competent authorities and a procedure for resolving tax disputes.
The signing reflects the government’s emphasis on developing stronger economic and political ties with international financial and commercial centres, particularly partners such as Hong Kong, the ministry added.
