1. DOUBLE TAXATION ARRANGEMENT ("DTA") BETWEEN HONG KONG AND OVERSEAS JURISDICTIONS
1.2 DTA WITH THAILAND
Benefits under the new DTA:
- The elimination of withholding tax on the service income paid by a Thailand Co. to HK Co.;
- Saving the capital gains when disposal of shares of the Thailand company if certain conditions are fulfilled under the DTA relief;
- Saving on the tax on the royalty paid by the Thailand Co. to HK Co. as the tax rate drops under the new DTA.