13 January 2003 (Monday)

Hong Kong and the Federal Republic of Germany today (13 January) signed an Avoidance of Double Taxation Agreement on shipping to exempt shipowners in these two places from paying double tax.

The Secretary for Economic Development and Labour, Mr Stephen Ip, signed the agreement on behalf of the Government of the Hong Kong Special Administrative Region while Germany was represented by its Consul-General, Dr Heinrich Wilhelm Beuth.

"The agreement is beneficial to Hong Kong and German shipowners as it exempts Hong Kong shipowners from paying tax levied on cargo loaded in Germany, and vice versa. It also strengthens Hong Kong's status as an international shipping centre," said Mr Ip at the signing ceremony.

"Hong Kong already has similar double taxation relief arrangements on shipping income with major trading partners, such as the U.S., Mainland China, the Netherlands, the U.K., New Zealand and the Republic of Korea.

"Similar agreements are under discussion with other tax administrations, including Greece, Singapore, India and Norway," Mr Ip said.

The Secretary for Economic Development and Labour Bureau, Mr Stephen Ip (2nd right), and the Consul-General of Germany to the HKSAR, Dr Heinrich Wilhelm Beuth (2nd left), today (January 13) signed an Avoidance of Double Taxation Agreement on shipping. Looking on are the Permanent Secretary for Economic Development and Labour (Economic Development), Ms Sandra Lee, and the Consul of Germany to the HKSAR, Mr Andreas Illner.