Hong Kong and Barbados signed a tax pact on 19 Mar 2026 to avoid double taxation, marking the 57th such agreement for Hong Kong.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Agreement Execution and Strategic Significance
On 19 Mar 2026, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, met with the Ambassador of Barbados to China, Mr Hallam Henry, in Beijing and signed on behalf of the Hong Kong Special Administrative Region ("HKSAR") Government a Comprehensive Double Taxation Agreement ("CDTA"). Mr Hui noted this is the 57th CDTA concluded by Hong Kong and the second one this year, emphasizing the goal to consolidate Hong Kong's status as an international financial and trade centre.
Tax Relief and Operational Benefits
Mr Hui highlighted Hong Kong's role as a 'super connector' and 'super value-adder', welcoming Barbadian enterprises, talent, and capital to use Hong Kong's financial stability to enter the Chinese Mainland market. Under the CDTA, tax paid by Hong Kong residents in Barbados will be allowed as a credit against tax payable in Hong Kong under the Inland Revenue Ordinance (Cap. 112) ("IRO"). Additionally, Barbados will exempt Hong Kong residents from withholding tax on dividends, which is currently 5 per cent in general.
Implementation and Regulatory Procedures
The CDTA will come into force after completion of ratification procedures by both sides. In Hong Kong, the Chief Executive in Council will make an order under the IRO, which will be tabled at the Legislative Council for negative vetting. Details of the CDTA are available on the Inland Revenue Department’s website. The press release was issued at HKT 17:28 on Thursday, 19 Mar 2026.
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