Tuesday 23 April 2013
Guernsey has concluded and signed a Double Taxation Agreement (DTA) with Hong Kong - its sixth DTA to meet the international standards on exchange of information. This comes less than two weeks after the publication of its successful Global Forum Peer Review report, and less than three weeks before signing its seventh, with Luxembourg.
The DTA was signed for Guernsey by the Chief Minister, Deputy Peter Harwood, who commented that this was a further important step in growing the business links between Guernsey and the Far East.
Deputy Harwood commented:
"I am delighted to further strengthen our relationship with Hong Kong. The signing of this DTA, combined with the visit of the Chinese Ambassador to the UK to Guernsey this week, recognises the importance attached to Guernsey's business relationship with the Far East, and reinforces and strengthens that relationship. The agreement is expected to bring significant commercial benefits to our finance sector, resolving issues relating to potential double taxation, and leading to greater opportunities for new business."
Guernsey's finance industry has worked closely with its counterparts in China and Hong Kong since 2006, particularly since the establishment of a Guernsey Finance office in Shanghai in 2007. In 2011 Guernsey businesses were approved to list on the Hong Kong Stock Exchange, and Guernsey's then Commerce & Employment Minister was part of a delegation that visited Hong Kong. Last year Guernsey's industry was heavily represented in Hong Kong at conferences such as SuperReturn Asia and STEP Asia.
Deputy Harwood said:
"The conclusion of this DTA, and the imminent signing of the DTA with Luxembourg, reflects Guernsey's commitment to meeting international standards of tax transparency and co-operation - underlining the fact that the OECD's Peer Review report earlier this month said that Guernsey had in place all of the elements which it assessed."
The signing of the Hong Kong DTA is Guernsey's sixth since the beginning of 2012; in addition Guernsey has now signed 41 Tax Information Exchange Agreements, the most recent being with the British Virgin Islands, signed by the Chief Minister last week. This network of agreements covers the majority of G20 countries and EU Member States.
Director of Income Tax, Rob Gray commented:
"As well as creating a mechanism for exchanging requested tax information with Hong Kong, the agreement will assist in resolving issues relating to potential double taxation of both corporate and personal incomes, such as business profits, dividends, interest, royalties, income from employment and pensions."
-Ends-
Further Information
Information on Guernsey's Double Taxation and Tax Information Agreement Network is available here.
Information on Guernsey's OECD Peer Review report is available here.
