Tax protocol: Secretary for Financial Services & the Treasury Professor KC Chan signs the second protocol to the Arrangement for the Avoidance of Double Taxation & Prevention of Fiscal Evasion with respect to Taxes on Income with Deputy Taxation Commissioner Wang Li in Beijing.

Hong Kong and the Mainland have signed the second protocol to the Arrangement for the Avoidance of Double Taxation & Prevention of Fiscal Evasion with respect to Taxes on Income.

Secretary for Financial Services & the Treasury Professor KC Chan signed the agreement with Deputy Taxation Commissioner Wang Li in Beijing today, which further clarifies which Hong Kong firms should pay Enterprise Income Tax on the Mainland.

The tax arrangement was formally signed on August 21, 2006, and launched on December 8 that year, but both sides have differed on the interpretation of some parts of it. After negotiation they agreed on the amendments and initialled the second protocol last September.

For full details on the agreement click here.