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Taxation agreements on airline income with New Zealand and Canada
Hong Kong has reached agreements separately with New Zealand and Canada on the arrangements to provide double taxation relief for airline income.
"Amendments have been made to the respective Air Services Agreements of Hong Kong with New Zealand and Canada to incorporate the relief arrangements. The first such arrangementss Hong Kong made were with the Republic of Korea earlier this year," a Government spokesman said.
Under the arrangements, Hong Kong will tax the income generated from international traffic of Hong Kong airlines derived from New Zealand and Canada and which has been granted full tax relief by the two countries respectively. In return, Hong Kong will forgo the right to tax the income of New Zealand and Canadian airlines derived from Hong Kong if such income is subject to tax in their respective countries.
"The Governor in Council has made orders under the Inland Revenue Ordinance to declare that the respective double taxation relief arrangements for airline income with New Zealand and Canada should take effect. The orders will be gazetted on September 27 and tabled in the Legislative Council on October 2," the spokesman added
"It is our policy to include provisions on double taxation relief for airline income into Air Services Agreements negotiated between Hong Kong and our bilateral aviation partners on a case by case basis," the spokesman explained.
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FS on tour to strengthen ties with USA & Europe
The Financial Secretary, Mr Donald Tsang will leave Hong Kong tomorrow (Thursday) to attend the 1996 Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank (WB) Group in Washington.
During his stay in the United States, he will participate in a conference on Hong Kong organised by the University of California in Los Angeles, visit his Alma Mater, the John F Kennedy School of Government of the Harvard University, where he will speak at a dinner hosted by the Dean, and call on a few leading bankers in New York.