PRESS RELEASE

(Source : Information Services Department)

Two orders on avoidance of double taxation agreements gazetted

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Two orders made by the Chief Executive in Council under the Inland Revenue Ordinance were gazetted today (October 19). The orders implement the agreements with Malaysia and Mexico for the avoidance of double taxation.

"The Comprehensive Agreements for the Avoidance of Double Taxation (CDTAs) ensure that investors will not have to pay tax twice on a single source of income," a Government spokesman said.

"In simple terms, the CDTAs will bring tax savings and a higher degree of certainty on taxation liabilities for investors from the respective places when they engage in trade and investment activities with Hong Kong."

Highlights of the two CDTAs can be found in the Annex.

The orders will be tabled at the Legislative Council on October 24 for negative vetting. The CDTAs will only take effect after both Hong Kong and the treaty partners have completed their ratification procedures.

Hong Kong signed the CDTAs with Malaysia on April 25, 2012 and Mexico on June 18, 2012.

Ends/Friday, October 19, 2012
Issued at HKT 11:01

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