PRESS RELEASE

(Source : Government Information Centre)

Double Taxation Relief Arrangements

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

The Chief Executive in Council made an order under the Inland Revenue Ordinance on January 16 to give effect to the double taxation relief provision in the air services agreement which Hong Kong recently signed with the People's Republic of Bangladesh.

The Government signed the Air Services Agreement with the People's Republic of Bangladesh on October 24, 2000. The Agreement contains a provision on double taxation relief in respect of airline income and profits.

"The double taxation relief provision provides that Hong Kong and the People's Republic of Bangladesh 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 Republic," a Government spokesman said today (January 22).

"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 January 23 and tabled in the Legislative Council on February 7.

End/Monday, January 22, 2001

NNNN