Mutual benefit: Luxembourg Economy & Foreign Trade Minister Jeannot Krecke and Secretary for Financial Services & the Treasury Professor KC Chan sign the avoidance of double taxation agreement.

Hong Kong and Luxembourg have signed an agreement on the avoidance of double taxation. This is the fourth comprehensive agreement for the avoidance of double taxation concluded by Hong Kong.

Secretary for Financial Services & the Treasury Professor KC Chan and Luxembourg Economy & Foreign Trade Minister Jeannot Krecke signed the agreement today.

It will eliminate double taxation instances encountered by Hong Kong and Luxembourg investors, and bring about tax savings and certainty in tax liabilities in connection with cross-border economic activities.

It will also help foster closer economic and trade links between the two places and provide added incentives for Luxembourg enterprises to do business or invest in Hong Kong.

"Both Hong Kong and Luxembourg are among the freest economies in the world, and both places have succeeded in surpassing our relatively small geographical size to become one of the most vibrant global economies. It is therefore no coincidence that we find ourselves natural partners in a taxation agreement," Professor Chan said.

The agreement is planned to come into force April 1 in Hong Kong and January 1 in Luxembourg.

Click here for details.