PRESS RELEASE

(Source : Government Information Centre)

HK to sign double taxation relief agreement with Thailand

*******************************************************************
The Secretary for Financial Services and the Treasury, Mr Frederick Ma, will leave for Bangkok tomorrow (September 7), to sign an agreement for the avoidance of double taxation with the Minister of Foreign Affairs of Thailand, Dr Kantathi Suphamongkon.

The agreement will provide a further level of certainty in tax liability and bring about certain tax savings to Hong Kong investors doing business in Thailand.

This is the first comprehensive agreement for the avoidance of double taxation (CDTA) that Hong Kong has concluded with an economy in the Asia-Pacific region, and the second one since the government began to explore the possibilities of establishing a network of CDTAs with its major trading partners in 1998. The first CDTA was signed in 2003 with Belgium.

"The Government is keen to establish a network of CDTAs with Hong Kong's trading partners, as these agreements would provide certainty and stability to investors, and enhance trade and economic ties with other economies," Mr Ma said.

Besides the CDTAs with Belgium and Thailand, talks on avoidance of double taxation have been held with Macau, Vietnam and some member economies of the Organisation for Economic Co-operation and Development (OECD) since 1998. Discussions are also being held with the Mainland to expand the existing limited avoidance of double taxation arrangement, signed in 1998, into a comprehensive one to provide further tax relief to Hong Kong and Mainland businessmen.

Ends/Tuesday, September 6, 2005
Issued at HKT 16:20

NNNN