Hong Kong has signed a comprehensive avoidance of double taxation agreement (CDTA) with Mauritius on 7 November.

This is the 46th CDTA that Hong Kong has concluded. It sets out the allocation of taxing rights between the two jurisdictions and will help investors better assess their potential tax liabilities from cross-border economic activities.

Double taxation will be avoided in that any tax paid in Mauritius by Hong Kong companies under the agreement will be allowed as a credit against the tax payable in Hong Kong on the same income, subject to the provisions of the tax laws of Hong Kong.

The agreement also provides tax relief arrangements.

It will come into force after both sides complete ratification procedures.