Hong Kong - Anti-abuse provisions

Hong Kong

Anti-abuse provision: Main purpose test

Article 10-3-e:

Notwithstanding the provisions of paragraph 2, the Contracting Party of which the company paying the dividends is a resident shall not levy a tax on dividends paid by that company, if the beneficial owner of the dividends is:

e)   a company which does not qualify under the conditions mentioned under (i), (ii), (iii) or (iv) of subparagraph (a) or a company other than a company mentioned under subparagraph (c), provided that the competent authority of the Contracting Party which has to grant the benefits determines that the establishment, acquisition or maintenance of the company does not have as its main purpose or one of its main purposes to secure the benefits of this Article.