Point 1: Double Tax Arrangement may not waive Mainland PRC tax payable in whole but only deducted the tax already paid in Hong Kong
Point 2: Foreigners 'Ordinarily' resident in Mainland PRC over 5 years, but within 5 years ever departed from Mainland PRC over 30 days, with 'registered' with Mainland PRC authority, can waive global incomes from Mainland PRC tax (under consultation)
Point 3: Mainland PRC resident need to pay 20% Mainland PRC tax for dividend received from HK companies
Point 4: Mainland PRC residents having global income over or equivalent to RMB 120,000 need to report their income to Mainland PRC tax authority
Point 5: 第十條 股息 / Article 10 DIVIDENDS - HK companies can enjoy concession of 5% / 10% tax on dividend received from Mainland PRC companies (need to approve that HK companies is HK tax resident)
Point 1: Double Tax Arrangement may not waive Mainland PRC tax payable in whole but only deducted the tax already paid in Hong Kong
For example, Mainland PRC resident Mr. A receives salaries income 1 million in Hong Kong. Assume under Hong Kong Salaries Tax, Mr. A pays HK$100,000 to HKSAR. And if under Mainland PRC Salaries Tax, HK$300,000 payable to Mainland PRC tax authority for this HK salary income, Mr. A need to report to Mainland PRC tax authority his Hong Kong salary income, and pay HK$200,000 ( = HK$300,000 - HK$100,000) to Mainland PRC tax authority.
2 types of tax treatments under Mainland PRC & HK double tax arrangement:
Type 1: Tax payable in Mainland PRC = Taxation under Mainland PRC tax law (global tax on resident) - tax already paid in Hong Kong
Type 2: If already taxed in Hong Kong, fully waive Mainland PRC tax.
《安排指明(中國內地) (對所得避免雙重徵稅和防止偷漏稅)令》
第二十一條 消除雙重徵稅方法
一、在內地，消除雙重徵稅如下：
內地居民從香港特別行政區取得的所得，按照本安排規定在香港特別行政區繳納的稅額，允許在對該居民徵收的內地稅收中抵免。但是，抵免額不應超過對該項所得按照內地稅法和規章計算的內地稅收數額。
二、在香港特別行政區，消除雙重徵稅如下：
除香港特別行政區稅法給予香港特別行政區以外的任何地區繳納的稅收扣除和抵免的法規另有規定外，香港特別行政區居民從內地取得的各項所得，按照本安排規定在內地繳納的稅額，允許在對該居民徵收的香港特別行政區稅收中抵免。但是，抵免額不應超過對該項所得按照香港特別行政區稅法和規章計算的香港特別行政區稅收數額。
三、一方居民公司支付給另一方居民公司的股息，而該另一方居民公司直接或間接控制支付股息的公司股份不少於百分之十的，該另一方居民公司可獲得的抵免額，應包括該支付股息公司就產生有關股息的利潤(但不得超過相應於產生有關股息的適當部份)而需要繳納的稅款。
Following tax applying Type 1（在雙邊稅務安排中的用語：可以在該另一方徵稅）(wording in DTA: may be taxed in that Other Side):
第七條 營業利潤 / Article 7 BUSINESS PROFITS
第十條 股息 / Article 10 DIVIDENDS
第十一條 利息 / Article 11 INTEREST
第十二條 特許權使用費 / Article 12 ROYALTIES
第十三條 財產收益 / Article 13 CAPITAL GAINS
第十四條 受僱所得 / Article 14 INCOME FROM EMPLOYMENT
第十五條 董事費 / Article 15 DIRECTORS’ FEES
第十六條 藝術家和運動員 / Article 16 ARTISTES AND SPORTSPERSONS
第十七條 退休金 / Article 17 PENSIONS
Following tax applying Type 2（在雙邊稅務安排中的用語：該另一方應予免稅(在內地包括營業稅) / 應僅在該一方徵稅 / 該一方應免予徵稅 ）(wording in DTA: shall be exempt from tax (including business tax in the Mainland of China) in the Other Side / shall be taxable only in that Side / shall not be taxed in that One Side):
第八條 海運、空運和陸運 / Article 8 SHIPPING, AIR AND LAND TRANSPORT
第十八條 政府服務 / Article 18 GOVERNMENT SERVICE
第十九條 學生 / Article 19 STUDENTS
第二十條 其它所得 / Article 20 OTHER INCOME
Reference 1: 《内地和香港特别行政区关于对所得避免双重征税和防止偷漏税的安排》
Reference 2: IRD: Comprehensive Double Taxation Agreements concluded
