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Publications and Press Releases :
Press Release
: News Archives
Order gazetted to implement the Comprehensive
Agreement for Avoidance of Double Taxation with Belgium
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An Order made by the Chief Executive in Council to
implement the Agreement with Belgium for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with Respect to Taxes
on Income and on Capital is gazetted today (February 6). It will
be tabled at the Legislative Council next Wednesday (February 11)
for negative vetting.
This agreement is the first comprehensive agreement for the avoidance
of double taxation concluded by the Hong Kong Special Administrative
Region Government with another economy.
Subject to the completion of ratification procedures for both sides,
the Hong Kong/Belgium agreement will apply with respect to Belgian
taxes from January 1, 2004, and with respect to Hong Kong taxes
from April 1, 2004.
Signed by the Secretary for Financial Services and the Treasury,
Mr Frederick Ma, and the Belgian Minister of Finance, Mr Didier
Reynders, in Hong Kong on December 10, 2003, the comprehensive agreement
for double taxation avoidance (CDTA) represents an important milestone
in Hong Kong's efforts in the area of CDTAs.
It will bring about tax savings to Hong Kong and Belgian investors
doing business in each other's jurisdiction in respect of certain
income, and provide a further level of certainty in tax liabilities.
As a result, it will provide added incentives for businesses in
Hong Kong and Belgium to enhance their cross-border investments
or activities, thus fostering closer economic ties between the two
places.
The Government began to explore the possibilities of concluding
CDTAs with its major trading partners in 1998. It concluded a double
taxation arrangement with the Mainland in 1998. In circumstances
where CDTA discussions could not immediately proceed, the Government
sought to conclude limited double taxation avoidance arrangements
(DTAs) for revenues arising from international shipping/air transport.
A total of 18 DTAs on airline income, five agreements on shipping
income and one agreement on airline and shipping income have been
concluded.
During 2004, the Government proposes to continue its CDTA discussions
with countries outside the region and to start negotiations with
some of Hong Kong's major regional partners.
Ends/Friday, February 6, 2004
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