PRESS RELEASE

(Source : Government Information Centre)

Double taxation relief arrangements with Macao SAR 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 Arrangement which Hong Kong signed with the Macao Special Administrative Region (the Macao SAR) is gazetted today (October 21).

The Government signed the Air Services Arrangement with the Macao SAR on October 13, 2003. The arrangement contains a provision on double taxation relief in respect of income from aircraft operation.

"The double taxation relief provision provides that the HKSAR and the Macao SAR 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 Macao," a government spokesman said.

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

The order will be tabled at the Legislative Council next Wednesday (October 27) for negative vetting.

Ends/Thursday, October 21, 2004

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