Hong Kong to ink tax pact with Jersey, Canada, and Austria

To prevent double taxation.

According to a report, three Executive Council orders implementing tax agreements with Jersey, Canada and Austria for the avoidance of double taxation were gazetted today.

The Financial Services & the Treasury Bureau said the Comprehensive Agreements for the Avoidance of Double Taxation ensure that investors will not have to pay tax twice on a single source of income.

The second protocol to the Austrian agreement enables the arrangement for information exchange under the agreement to be compliant with the Organisation for Economic Co-operation and Development standard on transparency and exchange of information.

The agreements will bring tax savings and a higher degree of certainty on taxation liabilities for investors from these places, when doing business in Hong Kong.

The orders will be tabled at the Legislative Council on May 8 for negative vetting. The agreements and protocol will take effect after ratification procedures are completed on both sides.

Hong Kong signed the agreements with Jersey and Canada in February and November last year, and the second protocol to the agreement with Austria in June last year.