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Spanish businessmen encouraged to make use of Hong Kong advantages and benefit from CDTA tax agreement with Spain (English only)
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     The Special Representative for Hong Kong Economic and Trade Affairs to the European Union, Miss Mary Chow, today (November 29, Madrid time) encouraged Spanish companies to make use of Hong Kong to do business with the Mainland of China and the Pearl River Delta region and benefit from the Hong Kong-Spain Avoidance of Double Taxation Agreement, which was signed in April this year.

     Miss Chow was addressing Spanish businessmen in Madrid at the first of three seminars co-organised in Spain by the Hong Kong Economic and Trade Office, Brussels, and the Hong Kong Trade Development Council. The two other seminars will take place in Valencia on November 30 and in Barcelona on December 1. A total of 240 business people are expected to attend.

     Miss Chow explained to the Spanish audience the "One Country, Two Systems" principle and the provisions of the Basic Law, which guarantee the Special Administrative Region a high degree of autonomy and the preservation of its freedoms.

     She noted that since Hong Kong's reunification with China in 1997, the international business community has remained unswervingly confident in Hong Kong's business environment. Hong Kong has maintained its Heritage Foundation and Fraser Institute rankings as the world's freest economy and was also ranked the world's most competitive economy by the International Institute of Management Development in May this year.

     Hong Kong enjoys an unrivalled position as the gateway to the Mainland of China and the Pearl River Delta. As the largest investor in the Mainland, experienced in its culture and procedures, it is benefiting from the new market opportunities arising from the Mainland, including through the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). Since Hong Kong practises a level playing field, foreign companies established in Hong Kong can enjoy the same CEPA advantages as Hong Kong companies.  

     IPO funds raised on Hong Kong's stock market reached 40 billion euros last year, with an increasing number of listings by foreign companies wanting to raise capital to develop their businesses in the Mainland. Hong Kong is also China's global financial centre for attracting capital and talents, and serves as a testing ground for the wider use of Renminbi in international trade and investment.

     With a world-class regulatory framework, Hong Kong provides legal protection for contracts and has a stringent intellectual property protection regime. Its arbitral awards are enforceable in 140 countries as well as in the Mainland. Added to these strengths are its strong anti-corruption culture and well-educated workforce.

     "It is therefore not surprising that according to figures released last month, a record 6,948 overseas and Mainland China companies have chosen to set up regional offices or headquarters in Hong Kong," Miss Chow said.

     Investors continue to flock to Hong Kong, which was the third largest recipient of foreign direct investment in the world in 2010.

     Another of Hong Kong's advantages is its low and simple tax regime. Moreover, on April 1, 2011, Hong Kong and Spain had signed a comprehensive avoidance of double taxation agreement (CDTA) which sets out clearly the allocation of taxing rights between the two jurisdictions and the relief on tax rates on different types of income.  

     Legal experts at the seminar explained to participants how the agreement would provide added incentives for Spanish enterprises to do business with Hong Kong or to invest there.

Ends/Tuesday, November 29, 2011
Issued at HKT 19:08

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