China

Does the double taxation agreement (DTA) between New Zealand and China extend to Hong Kong?

Answer:

No, the DTA with China has never extended to Hong Kong. New Zealand has a separate DTA with Hong Kong that entered into force on 9 November 2011.

"China" is defined narrowly for the purposes of the China DTA.

Since the hand-over of Hong Kong to China in 1997 they have been one country, although Hong Kong is a "special administrative district" of China. The laws of China will not apply to Hong Kong for a period of 50 years following the 1997 hand-over.

The relations between China and Hong Kong are framed by the 1984 Sino-British Joint Declaration and by the Basic Law on Hong Kong, the latter being legislation promulgated by China which became effective on 1 July 1997.

The Joint Declaration established the concept of "one country, two systems", and guarantees maintenance of local rule for 50 years after the hand-over of Hong Kong to China in 1997.

The DTA defines "China" as meaning the People's Republic of China (PRC) and includes the territory of the PRC in which the Chinese laws relating to taxation apply. Under the Basic Law on Hong Kong, the Chinese taxation laws do not apply to Hong Kong, so the DTA between New Zealand and China is not extended to include Hong Kong.

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