Maldives and Hong Kong Signs Double Tax Avoidance Agreement
On 26 May 2025, Hong Kong and the Maldives took a step towards strengthening their tax cooperation by signing a Double Tax Avoidance Agreement (DTA).
The signing occurred during the Asia Initiative Meeting, hosted by the Maldives. Hong Kong was represented by Mr. Sze Wai Benjamin Chan, the Commissioner of Inland Revenue Department of Hong Kong, while the Maldives was represented by Mr. Hassan Zareer, the Commissioner General of Taxation at the Maldives Inland Revenue Authority.
The DTA clarifies the allocation of taxing rights between the two countries, helping investors to better assess their potential tax liabilities related to cross-border activities. From a tax administration perspective, the DTA includes key provisions such as mechanisms for cooperation between tax authorities to combat tax evasion and avoidance, the exchange of information, and assistance in tax collection.
The agreement is expected to enter into force once both nations complete their ratification processes.
