25 October 2000 (Wednesday)

The signing of an Avoidance of Double Taxation Agreement with the United Kingdom further benefitted shipowners in Hong Kong and strengthened Hong Kong's status as the international maritime centre in Asia, the Secretary for Economic Services, Ms Sandra Lee, said today (25 October).

Speaking at the signing ceremony of the Avoidance of Double Taxation Agreement between the Hong Kong Special Administrative Region and the United Kingdom, Ms Lee said the Agreement exempted owners of Hong Kong ships from paying tax levied on cargo uplifted in the U.K., and vice versa.

"The Agreement is not only beneficial to Hong Kong shipowners but also their counterparts in the U.K," she said.

"Hong Kong already has double taxation agreements on shipping with our major trading partners, such as the U.S. and Mainland China and has also confirmed with the tax authorities of New Zealand and Korea that conditions for reciprocal tax exemption in our laws have been met.

"Similar agreements are under discussion with about 20 other tax administrations, including Germany, Greece, Australia and Denmark," Ms Lee added.

The Agreement was signed by Ms Lee and the British Consul-General, Sir James Hodge.