2 November, 2000 (Thursday)

Hong Kong and The Netherlands today (2 November) signed an Avoidance of Double Taxation Agreement on shipping to exempt shipowners in these two places from paying double tax.

The Secretary for Economic Services, Ms Sandra Lee, signed the agreement on behalf on the Government of the Hong Kong Special Administrative Region while The Netherlands was represented by its Minister for Foreign Trade, Mr Gerrit Ybema, who is on a two-day visit in Hong Kong.

"The agreement is beneficial to shipowners in Hong Kong and The Netherlands as it exempts owners of Hong Kong ships from paying tax levied on cargo loaded in The Netherlands, and vice versa," said Ms Lee at the signing ceremony.

"Hong Kong already has similar agreements on shipping with our major trading partners, such as the U.S. and Mainland China. The latest addition is the U.K. which signed the agreement last week," Ms Lee said.

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

Hong Kong has also confirmed with the tax authorities of New Zealand and Korea that conditions for reciprocal tax exemption in Hong Kong laws have been met, she added.