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by Mary Swire, Tax-News.com, Hong Kong
Tuesday, May 17, 2011
Five orders implementing the double taxation agreements (DTAs) with Liechtenstein,
France, Japan and New Zealand, and the protocol to the agreement with Luxembourg,
have been gazetted by Hong Kong’s Chief Executive under the Inland Revenue
Ordinance.
"The comprehensive DTAs ensure that investors will not have to pay tax
twice on a single source of income," a Hong Kong government spokesman said.
"In simple terms, the DTAs will bring tax savings and a higher degree of
certainty on taxation rights for investors from the respective places when they
engage in trade and investment activities with Hong Kong."
Hong Kong signed the DTAs with Liechtenstein on August 12, 2010; France on
October 21, 2010; Japan on November 9, 2010; and New Zealand on December 1,
2010; and the protocol with Luxembourg on November 11, 2010. The latter upgrades
the exchange of tax information clause in the 2004 DTA with Luxembourg to incorporate
the internationally-agreed standard of the Organization for Economic Co-operation
and Development.
The orders will be tabled at the Legislative Council on May 18 for negative
vetting. The DTAs and the protocol with Luxembourg will only take effect after
both Hong Kong and the treaty partners have completed their ratification procedures.
.
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