Trucks loading and unloading at Lekki Port, Lagos, Nigeria. (Photo/Xinhua)

Hong Kong - Christopher Hui, secretary for financial services and the treasury of China's Hong Kong Special Administrative Region (HKSAR) government, on Monday signed a comprehensive avoidance of double taxation agreement (CDTA) with Nigeria on behalf of the HKSAR government at an online bilateral meeting.

The agreement sets out the allocation of taxing rights between Hong Kong and Nigeria. In accordance with this CDTA, any tax paid by Hong Kong residents in Nigeria will be allowed as a credit against the tax payable in Hong Kong in respect of the same income, subject to the provisions of the Inland Revenue Ordinance.

Moreover, Nigeria's withholding tax rates for Hong Kong residents on dividends and interest, and for Hong Kong companies on royalties, which are currently at 10 percent, will be reduced to 7.5 percent.

This agreement is the 59th CDTA that Hong Kong has concluded. The CDTA will come into force after completion of ratification procedures by both sides.