Hong Kong and Portugal have signed a double taxation agreement, bringing bilateral tax relations into line with the OECD model.

Under the agreement, signed in Hong Kong on 22 March, the withholding tax rate on dividends received from Portugal is cut to 10 per cent.

The agreement will enter into force after the completion of ratification procedures in both jurisdictions.

The tax agreement with Portugal brings Hong Kong’s count to 19 comprehensive DTAs and 27 DTAs solely on airline income.