PRESS RELEASE

(Source : Government Information Centre)

Double taxation relief arrangements with Germany, Norway, Singapore and Sri Lanka gazetted

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Four orders made under the Inland Revenue Ordinance by the Chief Executive in Council to give effect to agreements for avoidance of double taxation on income from shipping and/or air transport, which the Hong Kong Special Administrative Region (HKSAR) signed with Germany, Norway, Singapore and Sri Lanka were gazetted today (November 19).

The Government signed the agreements with these countries in 2003 and 2004 respectively.

"The agreements provide that the HKSAR and the respective countries will provide reciprocal tax exemption for income, profits and property of aircraft and/or ship operators of the other side derived from operating aircraft and/or ships in their own area. This is mutually beneficial to the airline and/or shipping businesses of both Hong Kong and the respective countries," a Government spokesman said.

"It is our policy to conclude avoidance of double taxation agreements for revenues arising from the operation of ships and/or aircraft in international traffic with our shipping and/or aviation partners," he explained.

The orders will be tabled at the Legislative Council on Wednesday (November 24) for negative vetting.

Ends/Friday, November 19, 2004

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