|
Publications and Press Releases :
Press Release
: News Archives
Speech by SFST at the Signing Ceremony for the
Comprehensive
Agreement for the Avoidance of Double Taxation (English only)
*******************************************************************************
Following is a speech by the Secretary for Financial Services and
the Treasury, Mr Frederick Ma, in Bangkok today (September 7) at
the Signing Ceremony for the Comprehensive Agreement for the Avoidance
of Double Taxation:
Your Excellency, the Hon Bernard Chan, Ladies and Gentlemen,
It gives me great pleasure being
here today to represent the Hong Kong Special Administrative Region
for signature of the Comprehensive Agreement for the Avoidance of
Double Taxation with the Kingdom of Thailand. For Hong Kong, this
is very important as it is the first such agreement we sign with
an Asia Pacific country.
Hong Kong and Thailand have been
maintaining a very friendly relationship and engaging in co-operation
in many areas, including taxation. The signing of the Comprehensive
Agreement today is one manifestation of our co-operative efforts.
We also have many things in common. For instance, both Hong Kong
and Thailand have risen to the challenge of the Asian Financial
Crisis and recovered from it with flying colours.
In fact, Hong Kong and Thailand are
closely linked with each other in many aspects. Thailand is a major
tourist destination for Hong Kong people. When talking about Thailand,
many Hong Kong people will immediately recall its rich legacy of
history and culture, as well as its beautiful natural scenery, particularly
in Phuket and other outlying islands.
But tourism is only part of the huge
amount of business that is carried on between Thailand and Hong
Kong. In 2004, Thailand was our 10th largest trading partner world-wide
and the seventh largest in Asia. The average annualised growth rate
in bilateral trade between the two places from 2000 to 2004 was
8.4%, one of the highest that Hong Kong experienced with its trading
partners over the same period.
As for the flow of investment, Thailand
ranked 19th among the major sources of inward investment into Hong
Kong at the end of 2003, with a total stock of HK$5.1 billion, whereas
it was the eighth major recipient country of our outward direct
investment, with a stock amounting to HK$21.6 billion.
Today, we sign a very important agreement
for the avoidance of double taxation. The agreement ensures that
investors will not have to pay tax twice on the same income. In
simple terms, the agreement will translate into tax savings to Thai
and Hong Kong investors doing business in each other's area through
the allocation of taxing rights between the two places, and the
provision of relief in the case of double taxation. Moreover, it
formalises the tax relief currently offered by the two tax authorities,
thus providing a higher level of certainty and stability to existing
and potential investors alike. As a result, it will offer added
incentives for businesses in Hong Kong and Thailand to enhance their
cross-border investments and activities, thus fostering closer economic
ties between the two places.
Your Excellency, with the signing
of the Agreement today, we open a new chapter in our relationship
with Thailand. I am sure that in the years to come, the economic
and financial ties between the two places will become closer, and
our bilateral co-operation and exchanges will grow from strength
to strength.
Thank you.
Ends/Wednesday, September 7, 2005
Issued at HKT 17:50
NNNN
|
|