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Following is the speech by the Financial Secretary, Mr John C Tsang, at the Signing Ceremony of the Comprehensive Agreement for the Avoidance of Double Taxation between Hong Kong and France in Paris today (October 21, Paris time):
Minister Lagarde, Ladies and Gentlemen,
Good morning.
I am delighted to be here for the signing of a Comprehensive Agreement for the Avoidance of Double Taxation, or CDTA, between France and Hong Kong.
Bilateral ties between France and Hong Kong have been growing in breadth and depth for well over a century and a half. Between 2004 and 2008, our bilateral trade has grown at an average annual rate of 9%. Despite the global economic slowdown, the value of our bilateral trade reached five billion Euros in 2009.
The French business community in Hong Kong is one of the largest in the Asia Pacific, and French companies are doing well in all major sectors of our economy including banking, finance, transport, media, construction, catering and tourism. Quality French brands are popular with both our residents and the millions of tourists who visit Hong Kong each year.
The signing of this CDTA will underpin the strength of our close bilateral relationship. When it takes effect, our business communities will enjoy immediate and tangible benefits: the elimination of double taxation on the same source of income; lowering of withholding tax rates on passive income, including dividends, interest and royalties; and greater certainty of tax liabilities for investors.
This CDTA adopts the prevailing international standard on exchange of information and it underlines Hong Kong's strong commitment on tax transparency and our support for international efforts on this front.
Minister Lagarde, ladies and gentlemen, this Agreement represents a win-win situation, bringing benefits for French investors in Hong Kong and Hong Kong investors in France.
Thank you.
Ends/Thursday, October 21, 2010
Issued at HKT 16:21
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