PRESS RELEASE

(Source : Government Information Centre)
 

Double Taxation Relief Arrangements

*******************************************

The Chief Executive in Council made an order under the Inland Revenue Ordinance on October 31 to give effect to the double taxation relief provision in the air services agreements which Hong Kong recently signed with Denmark, Sweden and Norway respectively.

The Government signed the Air Services Agreements separately with Denmark and Sweden on March 14 and with Norway on June 2. Each of these Agreements contains a provision on double taxation relief in respect of airline income and profits.

"The double taxation relief provision provides that Hong Kong and Denmark/Sweden/Norway will provide reciprocal tax exemption for income profits and property of airlines of the other side which are derived from operating aircraft in their own area. This is mutually beneficial to the airline businesses of both Hong Kong and the three Scandinavian countries," a Government spokesman said today (November 8).

"It is our policy to include provisions on double taxation relief for airline income into air services agreements negotiated between Hong Kong and our bilateral aviation partners," he explained.

The order will be gazetted on November 10 and tabled in the Legislative Council on November 15.

End/Wednesday, November 8, 2000

NNNN