PRESS RELEASE

Double taxation avoidance orders to be gazetted on Friday

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Three orders will be gazetted this Friday (June 20), mainly to give effect to the double taxation relief arrangements relating to aircraft operations as agreed between the Government and Mexico and Finland. The orders will be tabled at the Legislative Council next Wednesday (June 25) for negative vetting.

"Under the double taxation relief arrangements, tax exemption for income and profits derived from aircraft operations in international traffic is provided for the airlines of Hong Kong, Mexico and Finland. Aircraft operators of Hong Kong, Mexico and Finland will benefit from the avoidance of double taxation. The arrangements should help lower cost of operation, improve income and indirectly efficiency as well," a spokesperson for the Transport and Housing Bureau said.

"It is our policy to enter into double taxation relief arrangements relating to aircraft operations with our aviation partners" the spokesperson explained.

One of the orders gazetted is to revoke the Specification of Arrangements (Government of the Republic of Finland) (Avoidance of Double Taxation on Income from Aircraft Operation) Order (Cap 112, sub. leg. AR), which is no longer required.

The orders were made under the Inland Revenue Ordinance by the Chief Executive in Council.

Ends/Wednesday, June 18, 2008
Issued at HKT 16:00

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