No Australia–Hong Kong Tax Treaty: What It Means for Expats

Australia and Hong Kong do not have a comprehensive double taxation agreement. As checked 2026-10-10, neither the IRD’s list of agreements concluded by Hong Kong nor the Australian Treasury’s list of income tax treaties includes the other jurisdiction. Without an agreement, no treaty tie-breaker applies, a Hong Kong resident’s Australian interest and unfranked dividends are withheld at 10% and 30%, and Hong Kong’s exemption for income already taxed abroad may still be available.

Is there a double tax agreement between Australia and Hong Kong?

Two official lists give the answer.

Authority	Page	What the list shows
Inland Revenue Department (IRD), Hong Kong	Comprehensive Double Taxation Agreements concluded	Australia is not listed. New Zealand is listed.
Australian Treasury	Income tax treaties	Hong Kong is not listed. China and Singapore each have their own entry.

The pages checked do not state why there is no agreement, or whether one is being negotiated.

What changes when there is no treaty?

The main effects come from the absence of a treaty. Each one is set out below using the official pages.

No tie-breaker. If both places treat you as resident, no agreement rule settles the question. Australian residency is decided only by the Australian Taxation Office’s (ATO) domestic tests.
Non-treaty withholding rates. For a Hong Kong resident, Australian interest is withheld at 10%, unfranked dividends at 30% and royalties at 30%. Most treaty countries get lower rates, with unfranked dividends at 15% and royalties at 10%.
Capital gains on departure. The ATO’s page on changing residency notes that a deferral choice on departure keeps assets within Australian capital gains tax until they are sold. With no treaty, no agreement provision changes this for a Hong Kong resident.

How does Australia decide whether I am still a resident?

The ATO decides residency on facts and circumstances, using its own tests. Citizenship and visa status do not decide it. A person can be an Australian resident for tax purposes without being a citizen or permanent resident.

There are four statutory tests:

the resides test, which is the primary test
the domicile test
the 183-day test
the Commonwealth superannuation test, which covers certain government employees at overseas posts

The resides test looks at physical presence, intention and purpose, family, business or employment ties, the location of assets, and social and living arrangements. Under the domicile test, you are a resident if your domicile is in Australia, unless your permanent place of abode is outside Australia. Under the 183-day test, you are a resident if you are present in Australia for more than half the income year, unless your usual place of abode is overseas and you do not intend to return to Australia.

Leaving Australia, holding a Hong Kong visa, or spending a fixed number of days abroad does not automatically make you a non-resident. The ATO also notes a 2013 legal decision showing that a person who fails to cut their connection with Australia will be treated as a resident.

The ATO gives two examples. In the first, Emily leaves for a one-year teaching contract in Japan, plans to return, and rents out her Australian property. She remains a resident under the domicile test because her domicile and permanent place of abode stay in Australia. In the second, Bronwyn takes a three-year overseas job with an option for three more, and her family moves with her. She is a foreign resident because she does not meet the resides test and her permanent place of abode is overseas. Keeping the family home is relevant but does not change that result.

The Australian income year runs from 1 July to 30 June.

How much tax is withheld on Australian interest and dividends after I move?

Withholding applies to a foreign resident’s Australian interest, dividends and royalties. The ATO page on interest, unfranked dividends and royalties sets out the steps. Follow them in this order:

Tell your Australian financial institution (the payer) that you are a foreign resident.
Tell the payer your current overseas address.
Ask the payer for a certificate of payment if you need proof of the tax withheld overseas.

If you do not give your overseas address, the payer may withhold at 47% instead of the non-treaty rate.

Withholding on this income is a final tax for a foreign resident. The income does not need to be declared in an Australian tax return.

The ATO page sets withholding rates for unfranked dividends. It does not list a withholding rate for fully franked dividends. It also does not state any refund of franking credits to foreign residents, so do not assume one.

Can I still claim Hong Kong’s exemption for income taxed in Australia?

Yes, the exemption route is still relevant. The IRD’s guide to Salaries Tax for people coming to work in Hong Kong (PAM 42) says a person with a Hong Kong employment may claim exemption for income on which they have paid tax similar to salaries tax in a territory outside Hong Kong, for services rendered there.

From the year of assessment 2018/19, this exemption does not apply to territories that have a comprehensive double taxation agreement with Hong Kong. For those territories, relief is by tax credit. Australia has no such agreement, so the exemption rule covers income for services rendered in Australia and taxed there. You need evidence of the foreign tax paid.

The Hong Kong year of assessment runs from 1 April to 31 March.

When does Hong Kong treat me as a resident?

The IRD’s Certificate of Resident Status page sets out the test for an individual. The IRD treats you as a Hong Kong resident if either of these applies:

you ordinarily reside in Hong Kong
you stay in Hong Kong for more than 180 days in a year of assessment, or for more than 300 days across two consecutive years of assessment that include the relevant year

A Certificate of Resident Status is used to claim benefits under Hong Kong’s agreements. Because Australia has no agreement with Hong Kong, the page does not describe using the certificate against Australia.

Individual cases need a registered tax agent in Australia or a qualified Hong Kong tax adviser.

Frequently asked questions

Does Australia have a tax treaty with Hong Kong?

Not a comprehensive one, as checked 2026-10-10. Australia is not on the IRD’s list of comprehensive agreements concluded by Hong Kong, and Hong Kong is not on the Australian Treasury’s list of income tax treaties.

Does leaving Australia automatically make me a non-resident?

No. The ATO decides residency on facts and circumstances under its four tests. Leaving Australia, holding a Hong Kong visa, or spending a fixed number of days overseas does not automatically make you a non-resident.

Does Hong Kong tax me on income already taxed in Australia?

It can give relief. Under the IRD’s guide (PAM 42), you may claim exemption for income on which you paid similar tax abroad for services rendered there. You need evidence of the foreign tax paid. Individual cases need a qualified Hong Kong tax adviser.

What happens if I do not tell my Australian payer my overseas address?

The payer may withhold at 47% instead of the non-treaty rate. Give the payer your current overseas address, and tell them you are a foreign resident.

Sources

Checked 2026-10-10.