Tax break: Secretary for Financial Services & the Treasury Frederick Ma and Thai Foreign Minister Dr Kantathi Suphamongkon at the Bangkok signing ceremony.

Hong Kong and Thailand have signed an agreement on the avoidance of double taxation.

Secretary for Financial Services & the Treasury Frederick Ma and Thai Foreign Minister Dr Kantathi Suphamongkon signed the document in Bangkok today.

Mr Ma said this was the first comprehensive agreement for the avoidance of double taxation that Hong Kong had signed with an Asia-Pacific country.

"The agreement ensures that investors will not have to pay tax twice on the same income," Mr Ma said.

It also formalises the tax relief currently offered by the two tax authorities, providing a further level of certainty and stability to existing and potential investors alike, he said.

"As a result, it will offer added incentives for businesses in Hong Kong and Thailand to enhance their investments and activities, thus fostering closer economic ties," Mr Ma said.