Hong Kong And Finland Sign Air Services Tax Pact

by Mary Swire, Tax-News.com, Hong Kong

21 November 2007

Hong Kong and Finland have signed an avoidance of double taxation agreement on income from aircraft operations.

Hong Kong Secretary for Transport & Housing, Eva Cheng and Finnish Consul-General, Timo Rajakangas signed the pact on November 19, which covers income derived from the operation of aircraft in international traffic.

Hong Kong has similar arrangements with Bangladesh, Belgium, Canada, China, Croatia, Denmark, Estonia, Ethiopia, Germany, Iceland, Israel, Jordan, Kenya, Kuwait, Mauritius, Mexico, the Netherlands, New Zealand, Norway, Russia, South Korea, Sweden, Switzerland, the UK and Macau.

The Hong Kong government has also revealed that Hong Kong International Airport handled 4.13 million passengers in October, up 7.1% on the same month last year, a result of the strong demand during the National Day Golden Week holiday.

Airport Authority Chief Executive Officer Stanley Hui observed that it is also a reflection of Hong Kong's continued attraction as a destination for Mainland visitors.

The airport processed 353,000 tonnes of cargo, up 7.6%, in line with growth in foreign trade between China and Europe and the US. It saw 25,830 air traffic movements, up 5.8%.

For the 12 months ended October 31, the airport handled 47.1 million passengers, a year-on-year increase of 7.4%. It handled 3.7 million tonnes of cargo and 292,740 air traffic movements, up 4.4% and 5% from last year.

"We will continue to capitalise on our geographical advantage and enhance our connectivity with the Mainland to meet growing demand for both passenger and cargo services," Mr Hui concluded.

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