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PRESS RELEASE

(Source : Information Services Department)

Three orders on avoidance of double taxation agreements gazetted

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   Three orders made by the Chief Executive in Council under the Inland Revenue Ordinance were gazetted today (May 3). The orders implement agreements with Jersey and Canada and the second protocol to the agreement with Austria 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, while the second protocol to the Austrian CDTA enables the exchange of information arrangement under the Austrian CDTA to be compliant with the Organisation for Economic Co-operation and Development standard on transparency and exchange of information," 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."

   Details of the CDTAs with Jersey and Canada as well as the second protocol to the Austrian CDTA can be found in the Annex.

   The orders will be tabled at the Legislative Council on May 8 for negative vetting. The CDTAs and protocol will only take effect after both Hong Kong and the treaty partners have completed their ratification procedures.

   Hong Kong signed the CDTAs with Jersey in February 2012 and Canada in November 2012, and the second protocol to the CDTA with Austria in June 2012.

Ends/Friday, May 3, 2013
Issued at HKT 11:01

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