Hong Kong’s Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Bahrain signed in March 2024 has come into force and will be applicable to Hong Kong tax for any year of assessment beginning April 1, 2026.
Under the agreement, companies and residents of both places will not have to pay tax twice on a single source of income.
The agreement will also allow them to have certainty on tax liabilities and save tax when they engage in cross-border business activities, thereby helping to promote bilateral trade and investment.
Hong Kong has signed CDTAs with 51 tax jurisdictions so far.
