On Thursday France and Hong Kong (China) signed a tax cooperation agreement. This agreement will promote exchanges of investment, know-how and technology between the two parties, said John Tsang the Hong Kong Secretary of Finance during a speech at a working lunch.
According to the French Ministry of Economics, the agreement is the result of ten years of negotiations. He added that France could obtain information necessary for the implementation of tax legislation in Hong Kong. In contrast, Hong Kong investors could benefit from a reduction of 10% withholding on passive income (such as dividends, interest and royalties). Today, 700 French companies reside in Hong Kong.