Mutual benefits: Secretary for Economic Development & Labour Stephen Ip (right) and Singapore's Second Minister for Finance Lim Hng Kiang at the agreement signing ceremony.

Hong Kong and Singapore have signed the Avoidance of Double Taxation Agreement on shipping and air services.

The agreement will benefit shipowners and airlines in both jurisdictions as they will be relieved of the burden of double tax, as well as strengthen our status as a premier international and regional logistics hub.

Secretary for Economic Development & Labour Stephen Ip signed the agreement with Singapore's Second Minister for Finance Lim Hng Kiang.

The agreement covers incomes derived from the operation of both ships and aircraft in international traffic. 

On the shipping side, Hong Kong already has similar double taxation relief arrangements with major trading partners like the Mainland, the US, the UK, the Netherlands, New Zealand, South Korea, Germany and Norway.

Meanwhile, air arrangements have also been made with 16 aviation partners, including the Mainland, the UK, the Netherlands and Canada.