Hong Kong, Nigeria sign double taxation agreement to boost investment

(ECNS) — Hong Kong and Nigeria signed a comprehensive agreement to avoid double taxation on Monday, expanding Hong Kong's tax treaty network and strengthening economic ties with one of its key trading partners in Africa.

The agreement, Hong Kong's 59th comprehensive tax treaty and its fourth signed this year, was concluded during an online meeting between Secretary for Financial Services and the Treasury Christopher Hui and Nigeria's Minister of Finance and Coordinating Minister for the Economy Taiwo Oyedele.

Under the agreement, tax paid by Hong Kong residents in Nigeria can be credited against Hong Kong tax on the same income. The agreement also reduces withholding tax on dividends, interest and royalties paid by Nigerian companies to Hong Kong residents from 10% to 7.5%.

Hui said Nigeria is a participant in the Belt and Road Initiative and an important trading partner for Hong Kong in Africa. Expanding Hong Kong's tax treaty network will provide greater tax certainty for Hong Kong-based businesses expanding abroad, encourage companies to manage funds and assets in Hong Kong, and help them better control risks.

(By Tang Yuxian)