Hong Kong signs tax agreement with Laos
Hong Kong has signed its 61st comprehensive tax agreement with Laos, a Southeast Asian nation and Belt and Road partner. The pact reduces withholding tax rates on dividends and interest, aims to prevent double taxation, and is expected to boost bilateral trade and investment.
Hong Kong signed a comprehensive tax agreement with Laos on 29 October 2026, the 61st such agreement for the city and the sixth this year, according to the Hong Kong government. The agreement was signed by Hong Kong's Financial Secretary Paul Chan and Laos' Minister of Finance Santiphab Phomvihane.
Chan said Laos, as a member of the Association of Southeast Asian Nations (ASEAN) and a Belt and Road partner, offers huge potential for economic and trade cooperation with Hong Kong. The agreement will help strengthen bilateral economic ties, further enhance Hong Kong's role as a 'super connector' and 'super value-add' linking mainland China with international markets, and create favourable conditions for regional economic integration.
During bilateral talks, Chan briefed Santiphab on Hong Kong's latest developments as an international financial centre, including advantages in capital markets, green and sustainable finance, wealth management, international competitiveness and tax policy. He also outlined government efforts to develop Hong Kong into a global hub for gold trading, clearing and reserves. The two sides discussed deepening cooperation to jointly promote high-quality Belt and Road development.
Secretary for Financial Services and the Treasury Michael Wong had met Santiphab in Hong Kong and Laos in March and July this year to discuss early conclusion of the agreement. The pact is the 16th signed by the current administration. Hong Kong has now concluded agreements with seven ASEAN members, covering more than 70 per cent of ASEAN's total population and GDP.
The agreement clarifies taxing rights between the two places, enabling investors to better assess potential tax liabilities of cross-border economic activities and avoid double taxation. Under the pact, taxes paid by Hong Kong residents in Laos can be credited against Hong Kong tax on the same income under the Inland Revenue Ordinance (Cap. 112). Laos will reduce its withholding tax on dividends paid to Hong Kong residents from 10 per cent to a minimum of 5 per cent, and on interest from 10 per cent to 5 per cent.
The agreement will take effect after both sides complete their approval procedures. For Hong Kong, the Chief Executive in Council will make an order under the Inland Revenue Ordinance, which will be tabled before the Legislative Council under a negative resolution procedure. Full details are available in English on the Inland Revenue Department's website.