Armenian parliamentary committee approves double taxation agreement with Hong Kong
YEREVAN, March 19. /ARKA/. The Parliamentary Committee on Economic Affairs gave a positive conclusion regarding the ratification of the agreement on the elimination of double taxation of income between Armenia and Hong Kong during a meeting on Wednesday.
The issue will be presented for discussion at the next plenary session.
Armenian Finance Minister Vahe Hovhannisyan stated that the agreement with Hong Kong was signed on June 14, 2024, in Yerevan.
"The agreement was developed based on the principles of the Organization for Economic Cooperation and Development. The document regulates tax issues arising from trade and economic relations between the contracting countries," Hovhannisyan noted.
According to him, the agreement aims to eliminate double taxation of income, thereby reducing the negative impact of income tax-related barriers on mutual investments and trade. This will help promote entrepreneurial activity by creating favorable competitive conditions for foreign investments.
"The document also aims to establish a predictable and stable tax environment," Hovhannisyan said.
The Finance Minister also mentioned that the agreement sets out the taxation conditions for the main types of taxes, dividends, interest, royalties, and rates for business circles in the contracting states on the principle of reciprocity. This means that the right to tax is redistributed between the parties.
Ori Alaverdyan, Head of the Department of Revenue Policy and Administration Methodology at the Ministry of Finance, added that Armenia currently has agreements with 51 countries.
"Agreements with Hong Kong and Japan have already been signed and are in the process of ratification. The ratification process has been completed by Hong Kong, and I hope we will also ratify it this year, with the agreement coming into effect next year. A similar agreement with Japan was signed in 2024, and I believe that agreement will also come into effect next year," Alaverdyan noted.
