You are here

14-Jan-2013

Hong Kong and Italy have signed an agreement for the avoidance of double taxation and the prevention of income tax evasion.

Secretary for Financial Services & the Treasury Prof KC Chan signed the deal with Italian Minister of Economy & Finance Prof Vittorio Grilli in Hong Kong today.
 It is the 27th comprehensive agreement for the avoidance of double taxation concluded by Hong Kong with its trading partners.
 Prof Chan said the agreement clearly sets out the allocation of taxing rights between the two jurisdictions, and the relief on tax rates on different types of passive income. He said it will help investors better assess their potential tax liabilities from cross-border economic activities.
 It will further strengthen economic and trade ties between the two places, and provide added incentives for Italian companies to do business or invest in Hong Kong, he added.
 Under the agreement, Hong Kong airlines operating flights to Italy will be taxed at Hong Kong's corporation tax rate, and will not be taxed in Italy. Profits from international shipping transport earned by Hong Kong residents that arise in Italy, which are currently subject to tax there, will not be taxed in Italy.