PP HONG KONG
GRS 122
CONFIDENTIAL
FM FCO 121700Z SEP 80
TO PRIORITY HONG KONG
CONFIDENTIAL
TELEGRAM NUMBER 771 OF 12 SEPTEMBER
INFO PRIORITY PEKING
НСК
TOP COPY
184/2
RECEIVED IN REGISTRY NO. 51
16 SEP 1980
DESK OFFICER
INDEX
Мо
PA
43 90. 1
REGISTRY
on Taken
Aw $10.9.1 AW 161
UK/CHINA DOUBLE TAXATION AGREEMENT : AIR TRANSPORT
1. HMG ARE AT PRESENT NEGOTIATING HERE WITH PRC A DOUBLE TAXATION AGREEMENT PROVIDING RECIPROCAL EXEMPTION FROM UK INCOME TAX AND CHINESE INCOME TAX FOR PROFITS OF CHINESE AND UK AIR CARRIERS RESPECTIVELY.
2.
PRC WISH HONG KONG TAX TO BE INCLUDED IN AGREEMENT. IS CONSTITUTIONALLY IMPOSSIBLE.
THIS
3. GRATEFUL TO KNOW WHETHER YOU WILL IMPOSE TAX ON CAAC PROFITS IN HONG KONG AND ON SALARIES OF CHINA BASED CAAC STAFF WORKING IN HONG KONG DESKBY 15090OZ.
YOU SHOULD KNOW THAT CHINESE DELEGATION SAY IMPLEMENTATION AIR SEWRVICES AGREEMENT IN JEOPARDY IF HONG KONG TAX IMPOSED. THIS IS ONLY OUTSTANDING ISSUE.
CARRINGTON
NNNN
DIST
LIMITED
HKGD
MAED
FED
SIR E YOUDE
COPIES TO
MR SWIFT, CAIR/DOT
MR O'CONNOR, POLICY DIVISION.
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