Armenia ratifies double taxation avoidance agreement with Hong Kong

YEREVAN, March 26. /ARКА/. On Wednesday, the National Assembly of Armenia ratified an agreement on the avoidance of double taxation of income between the Republic of Armenia and Hong Kong during its regular session.

The document, signed on June 14, 2024, in Yerevan, addresses tax issues arising in the trade and economic relations between the two countries.

The agreement aims to reduce the negative impact of income tax barriers on mutual investments and trade, thereby promoting entrepreneurial activity by creating favorable, competitive conditions for foreign investments. Additionally, the agreement seeks to establish a predictable and stable tax environment.

For the business communities of the contracting states, the agreement sets out taxation conditions for key taxes, including dividends, interest, royalties, and rates, based on the principle of reciprocity. In other words, the right to taxation is redistributed between the two parties.

The agreement will come into effect in 2026. Currently, Armenia has active agreements with 51 countries.