In Belgrade, on August 14, 2020 and in Hong Kong, on August 27, 2020, the Agreement between the Government of the Republic of Serbia and the Government of Hong Kong of the Special Administrative Region of the People’s Republic of China (hereinafter: Hong Kong) on the elimination of double taxation income and property taxes and the prevention of tax evasion and avoidance (hereinafter: the Agreement) was signed.
Due to restrictions caused by the coronavirus pandemic, the signing of the Agreement was executed separately (in Belgrade and Hong Kong).
On behalf of the Government, as the representative of the Republic of Serbia, the Agreement was signed by Siniša Mali, the Minister of Finance, and on behalf of the Government of Hong Kong, the Agreement was signed by HUI Ching-yu Christopher Vault.
The conclusion of the Agreement represents a significant contribution to the improvement of bilateral economic and financial cooperation between the Republic of Serbia and Hong Kong, as the solutions contained in the Agreement eliminate double taxation of natural and legal persons – residents of the two countries.
We especially emphasize that the Agreement stimulates the investment of capital of the residents of the Republic of Serbia in Hong Kong and vice versa.
The agreement also provides for cooperation between the tax administrations of the Republic of Serbia and Hong Kong to effectively implement the agreement and prevent tax evasion by their residents.
Having in mind the above, we can conclude that the implementation of the Agreement provides a legal precondition for more efficient business and competitiveness of Serbian companies in Hong Kong and Hong Kong’s companies in the Republic of Serbia, which is a significant contribution to the bilateral economic and financial cooperation.
We emphasize that this agreement is a precondition for significant Hong Kong investments in the economy of the Republic of Serbia, i.e. creating conditions for their participation in the privatization process, but also for applying the appropriate financial instruments to encourage higher forms of bilateral economic cooperation.
The two sides have agreed to take the necessary measures for the earliest possible confirmation of the Agreement, its entry into force, as well as the beginning of implementation, regarding which the interested professional public will be informed in a timely manner.
After the entry into force of the Agreement, we will publish more detailed information on the solutions contained in individual articles of the Agreement in a separate post.