India and Hong Kong on Monday signed an agreement in Beijing for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The Ministry of Finance, in a statement, said, “Government of India and the Hong Kong Special Administrative Region (HKSAR) of People’s Republic of China have signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.”
It added that “the agreement will stimulate the flow of investment, technology and personnel from India to HKSAR and vice versa, prevent double taxation and provide for the exchange of information between the two contracting parties. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance”.
India has signed similar agreements with other countries.