PRESS RELEASE

(Source : Government Information Centre)

Double taxation relief arrangements with Croatia gazetted

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An order made under the Inland Revenue Ordinance by the Chief Executive in Council to give effect to the double taxation relief provision in the Air Services Agreement which Hong Kong signed with the Republic of Croatia is gazetted today (March 5).

The Government signed the Air Services Agreement with the Republic of Croatia on June 7, 2002. The Agreement contains a provision on double taxation relief in respect of income from aircraft operation.

"The double taxation relief provision provides that Hong Kong and the Republic of Croatia will provide reciprocal tax exemption for income, profits and property of airlines of the other side 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.

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

The order will be tabled at the Legislative Council next Wednesday (March 10) for negative vetting.

Ends/Friday, March 5, 2004

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