Hong Kong And Thailand To Ink Double Taxation Agreement

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

07 September 2005

Hong Kong's Secretary for Financial Services & the Treasury, Frederick Ma, will sign an agreement for the avoidance of double taxation with the Thai Foreign Minister Kantathi Suphamongkon in Bangkok on September 7.

This is the first comprehensive agreement for the avoidance of double taxation that Hong Kong has concluded with an Asia-Pacific economy, and the second since the Government began exploring establishing a network of agreements with major trading partners in 1998. The first was signed in 2003 with Belgium. The agreement will provide certainty in tax liability and bring tax savings to Hong Kong investors in Thailand.

"The Government is keen to establish a network of comprehensive agreements for the avoidance of double taxation with Hong Kong's trading partners, as these agreements would provide certainty and stability to investors, and enhance trade and economic ties with other economies," Mr Ma noted.

Hong Kong has also been holding talks on the avoidance of double taxation with Macau, Vietnam and some member economies of the Organisation for Economic Co-operation and Development.

In addition, discussions are being held with the Chinese mainland to expand the existing limited avoidance of double taxation arrangement, signed in 1998, into a comprehensive one to provide more tax relief to Hong Kong and mainland businesses.

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