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HK, Macao tax exemption order gazetted
(Xinhua)
Updated: 2004-10-22 10:17

An order of the Hong Kong Special Administrative Region (HKSAR) government which gives effect to the double taxation relief provision in the Air ServicesArrangement with the Macao SAR was gazetted Thursday.

Made under the Inland Revenue Ordinance by the Chief Executive in Council of the Hong Kong, the order will bring mutual benefits to the airline businesses of both places.

Under the new provision, Hong Kong and Macao will provide reciprocal tax exemption for income, profits and property of airlines of the other side derived from operating aircraft in their own area.

The Hong Kong government signed the arrangement with the Macao government last October, which contains a provision on double taxation relief in respect of income from aircraft operation.

It is the Hong Kong government's policy to include provisions on double taxation relief for airline income into bilateral air services arrangements negotiated between Hong Kong and its aviation partners, a Hong Kong government spokesman said.

The order will be tabled at the Legislative Council on October 27.

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