An order made by the Chief Executive in Council to implement the Agreement with Luxembourg for the Avoidance of Double Taxation was gazetted today. It is Hong Kong's fourth comprehensive agreement for the avoidance of double taxation.

Secretary for Financial Services & the Treasury Professor KC Chan and Luxembourg Economy & Foreign Trade Minister Jeannot Krecke signed the agreement on November 2.

The pact 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-boundary 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.

The agreement has come into force in Luxembourg January 1 and will be implemented in Hong Kong on April 1.