TNAG-2308-FCO40-3345-Future-of-Hong-Kong-shipping-register-1991 — Page 265

4

Kong Government

inspection by Hong Kong

surveyors when they are

first registered in Hong Kong, and every five years thereafter.

Taxation Arrangements

10.

provide

As recommended by the Steering Group, an agreement to

relief from double taxation on the international

operation of shipping was signed between Hong Kong and the

United States in August 1989.

11.

The Hong Kong Government has also decided

also decided to exempt

from profits tax, with effect from the establishment of the new

register on 3 December 1990, profits derived from

(a)

the carriage of passengers, mail, livestock and

goods uplifted in Hong Kong by ocean-going ships

registered on the new register; and

(b)

the

charter

hire of ocean-going

ships,

irrespective of whether ΟΙ not the ships are

registered in Hong Kong.

These exemptions will not apply to income arising from journeys

within the waters of Hong Kong, and between Hong Kong and Macau

and other places within the Pearl River delta. No change will

be made to the present position concerning the taxation of such

income. This intention was announced during the passage of the