Hong Kong and Singapore sign taxation agreement

Hong Kong and Singapore have signed an avoidance of double taxation agreement on shipping and air services income.

The singing ceremony was held in Singapore with the Secretary for Economic Development and Labour, Mr Stephen Ip, and the Second Minister for Finance and Minister, Prime Minister's Office, Mr Lim Hng Kiang.

"I am pleased the two governments have concluded this agreement today. It covers income derived from the operation of both ships and aircraft in international traffic," he said.

"It will benefit Hong Kong and Singaporean ship-owners and airlines as they will be relieved of the burden of double tax. It also strengthens Hong Kong's status as the preferred international and regional logistics hub."

Mr Ip said that in relation to shipping, Hong Kong already had similar double taxation relief arrangements with major trading partners, including mainland China, the U.S., the U.K., the Netherlands, New Zealand, the Republic of Korea, Germany and Norway".

On air services income, Hong Kong has established double taxation relief arrangements with 16 aviation partners, including the Mainland, the U.K., the Netherlands, and Canada.

End/Friday, November 29, 2003