Mainland China and Hong Kong Special Administrative Region (each hereinafter referred to as a "side") signed a new arrangement for the avoidance of double income taxation on 21 August 2006. The arrangement extends the scope of the agreement signed in 1998 and includes provisions on investment income. The arrangement was concluded in Chinese and generally follows the OECD Model Convention (2005). The maximum rates of withholding tax are: -   10% on dividends in general, and 5% where the beneficial owner is a company holding at least 25% of the capital of the paying company; -   7% on interest...