PRESS RELEASE

(Source : Government Information Centre)

Hong Kong and Sri Lanka sign Avoidance of Double Taxation Agreement

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The Secretary for Economic Development and Labour, Mr Stephen Ip, today (March 26) signed an Avoidance of Double Taxation Agreement (DTA) on shipping and air services income on behalf of the Government of the Hong Kong Special Administrative Region with the Government of the Democratic Socialist Republic of Sri Lanka (Sri Lanka) at a ceremony held in Colombo, Sri Lanka.

Representing Sri Lanka at the signing ceremony was the Commissioner-General of Inland Revenue, Mr Kandiah Suseelar.

"I am glad that the two governments have concluded this agreement today. It covers income derived from the operation of both ships and aircraft in international traffic. It will benefit Hong Kong and Sri Lankan shipowners and airlines as they will be relieved of the burden of double taxation. It also strengthens Hong Kong's status as the preferred international and regional logistics hub," said Mr Ip.

"On the shipping side, Hong Kong already has similar double taxation relief arrangements with major trading partners, including Mainland China, the US, the UK, the Netherlands, New Zealand, the Republic of Korea, Germany, Singapore and Norway."

"In respect of air services income, Hong Kong has also established double taxation relief arrangements with major aviation partners, including Mainland China, the UK, the Netherlands, and Canada," Mr Ip said.

Ends/Friday, March 26, 2004

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