Hong Kong and Slovenia sign a double taxation agreement, with multiple withholding tax rates reduced.

The Secretary for Financial Services and the Treasury of Hong Kong, Hui Ching-yu, held a bilateral meeting today (September 4) in Hong Kong with the Ambassador of the Republic of Slovenia to China, Mabo Yang, and represented the Government of the Hong Kong Special Administrative Region (HKSAR) in signing a Comprehensive Agreement for the Avoidance of Double Taxation (the Agreement) with the Slovenian government. Under the Agreement, taxes paid by Hong Kong residents in Slovenia can be credited against the taxes levied by Hong Kong on the same income according to the Inland Revenue Ordinance (Cap. 112). Additionally, the withholding tax rate for dividends collected from Hong Kong residents by Slovenia will be reduced from the current maximum of 25% to a maximum of 10%, while the withholding tax rate for interest and royalties will also decrease from the current maximum of 25% to 5%. Hui Ching-yu stated, This is Hong Kong's 60th agreement and the 15th signed by the current government this term, and the fifth this year, marking the government's active efforts to expand its network of agreements into a new journey with Health Technology Group. Slovenia is an important trade partner of Hong Kong in Europe and also a participant in the Belt and Road Initiative. Last September, I visited Slovenia to discuss the early signing of the agreement, and I received a positive response from the Slovenian government, which led to today's formal signing by both parties. The Agreement clarifies the taxing rights of both regions, allowing investors to better assess the potential tax burden of their cross-border economic activities and avoid double taxation, thereby promoting bilateral trade and investment. The Financial Services and the Treasury Bureau is also actively following up on the consensus reached during the Chief Executive's visit to Central Asia in June this year to strengthen cooperation. We have completed consultations on the agreement with Kazakhstan and will sign it once both sides have completed their internal procedures. We will also begin consultations with Uzbekistan within this year. During the bilateral meeting, Hui Ching-yu introduced to Mabo Yang the latest developments in Hong Kong as an international financial center, including its leading position in cross-border wealth management, international competitiveness, and tax policies, as well as the measures taken by the HKSAR government to develop Hong Kong into a global hub for gold trading, clearing, and reserves. The Agreement will take effect after both parties complete their respective approval procedures. For Hong Kong, the Chief Executive, together with the Executive Council, will issue an order regarding the Agreement under the Inland Revenue Ordinance, which will be submitted to the Legislative Council for review after establishing it.