HK-Netherlands Agreement on Avoidance of Double Taxation on Shipping Inco

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Last updated at: (Beijing Time) Tuesday, November 27, 2001

HK-Netherlands Agreement on Avoidance of Double Taxation on Shipping Inco

Shipowners in Hong Kong and the Netherlands will only need to pay tax in either Hong Kong or the Netherlands on their income derived from the other area from international shipping business from 2002.

The Hong Kong SAR government made the remarks Monday while announcing that an agreement between Hong Kong and the Netherlandson avoidance of double taxation on shipping income will enter intoforce on January 1, 2002.

An HKSAR government spokesman said that in November last year, the HKSAR government and the Netherlands government signed an Agreement for the Avoidance of Double Taxation on Income, Profits,Gains or Capital of an Enterprise Operating Ships in InternationalTraffic.

"The agreement provides tax exemption in one area for profits derived by an enterprise of the other area from international shipping business," the spokesman said.Shipowners in HK or the Netherlands will, as a result, not be subject to tax in the other area on the income they derive from international shipping business

Till now, the HKSAR has signed similar taxation agreements or arrangements with the United States, the United Kingdom and the Chinese mainland, New Zealand and South Korea.