XN000022-1997-01-29 — Page 4

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Double Taxation Agreement on airline income with the Netherlands

Hong Kong has reached an agreement with the Netherlands on the arrangements to provide double taxation relief for airline income.

"Amendments have been made to the Air Services Agreement of Hong Kong with the Netherlands to incorporate the relief arrangements. We have already concluded and implemented such arrangements with asthe Republic of Korea, New Zealand and Canada," a Government spokesman today (Wednesday) said.

Under the arrangements, Hong Kong will tax the income generated from international traffic of Hong Kong airlines derived from the Netherlands and which has been granted full tax relief by the Netherlands. In return, Hong Kong will forgo the right to tax the income of the Dutch airlines derived from Hong Kong if such income is subject to tax in the Netherlands.

"The Governor in Council has made an order under the Inland Revenue Ordinance to declare that the double taxation relief arrangements for airline income with the Netherlands should take effect. The order will be gazetted on January 31 and tabled in the Legislative Council on February 19," 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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Study on plan submission commences

The Buildings Department today (Wednesday) appointed Au Posfora Consultants Limited to carry out a feasibility study on the submission of plans and documents in electronic data format.

The $2.4 million study, funded by the Hong Kong Jockey Club Charities Trust, will be completed in 18 months.

Speaking after signing the contract, the Assistant Director of Buildings (Structural Engineering), Mr Ng Hon-keung, said the project would lead to the implementation of an environment-friendly method of using advanced computer technology to submit and process building plans.