Singapore Signs Agreement With Hong Kong To Avoid Double Taxation On Income From Operating Ships Or Aircraft In International Traffic

The Republic of Singapore and the Hong Kong Special Administrative Region of the People's Republic of China signed today an agreement for the avoidance of double taxation on income from operating ships or aircraft in international traffic. Together with this agreement, Singapore now has Avoidance of Double Taxation Agreement on income from operating ships or aircraft in international traffic with 7 countries.

2 The signing took place in Singapore. Mr. Lim Hng Kiang, Second Minister for Finance & Minster, Prime Minister's Office, signed on behalf of Singapore and Mr Stephen Ip, Secretary for Economic Development and Labour, signed on behalf of the Hong Kong Special Administrative Region of the People's Republic of China.

3 The agreement provides for income derived from the operation of ships and aircraft in international traffic by Singapore shipping and airline enterprises to be exempt from Hong Kong tax. Similarly, income derived from the operation of ships and aircraft in international traffic by Hong Kong shipping and airline enterprises would be exempt from Singapore tax. The agreement will help facilitate trade and enhance economic ties between Singapore and Hong Kong.

4 The agreement will enter into force after its ratification by both parties. The full text of the Agreement will be made available on the Inland Revenue Authority of Singapore's (IRAS) website at www.iras.gov.sg. Any enquiries on the Agreement may be referred to IRAS at telephone number 6351 2119.

MINISTRY OF FINANCE