Posted by
lammadave
13 yrs ago
I am currently a UK resident about to buy a HK flat which I will probably rent out. I don't know the details of the double taxation treaty but does this treaty mean that I don't need to declare the rental income in the UK if I declare it in HK (and pay tax in HK)?
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I'm not a tax expert but I assume you would have to pay tax both in UK and HK on any rental income. If there is a double-tax treaty, then maybe you won't have to pay the full amount twice. However, if you are a UK citizen and UK resident, I assume you will be taxed on your world-wide income.
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[UPDATE] Please note that fee quotes stated in historic postings may be out-of-date.
Under typical Double Tax Agreements (“DTA”), taxes paid abroad can be offset against domestic taxes levied on foreign income/dividends i.e. property/income tax in HK can offset the higher UK tax to avoid “double taxation”. You still will have a tax in Hong Kong but that can be minimized with proper planning.
The pension regime in Hong Kong (The Occupational Retirement Scheme “ORS”) can limit your property/income tax exposure and eliminate your UK tax on any future capital gains; worth a look.
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