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Some 120 participants from the business sector joined a seminar in Kuala Lumpur, Malaysia, today (April 25) to learn more about the benefits and business opportunities under the "Comprehensive Double Taxation Agreement" (CDTA) signed between Hong Kong and Malaysia.
Organised by the Hong Kong Economic and Trade Office (HKETO) in Singapore, Invest Hong Kong and the Asian Strategy and Leadership Institute, a leading think tank in Malaysia, the seminar invited representatives from the governments of Hong Kong and Malaysia as well as tax experts from both economies to speak on the benefits of the CDTA.
Addressing the seminar, the Director of the HKETO in Singapore, Mr Fong Ngai, said, "This agreement provides real and tangible benefits to the business community. I am sure the arrangements for avoidance of double taxation and reduction in business costs will be welcomed by the business community. This is indeed our intention in signing the CDTA with Malaysia."
Under the CDTA, investors will not have to pay tax twice on a single source of income. It will bring about tax savings and a higher degree of certainty on taxation liability for investors from Hong Kong and Malaysia when they engage in cross-border trade and investment activities involving the economies concerned. Hong Kong is actively seeking to expand its network of CDTAs with major trading and investment partners with a view to strengthening Hong Kong's position as the preferred investment and business destination.
"We are glad to see that the CDTA with Malaysia has come to fruition as shown by the strong interest from the Malaysian business community on the subject matter," said the Deputy Commissioner (Technical) of the Inland Revenue Department, Mr Chiu Kwok-kit, who was one of the speakers at the seminar.
Mr Fong added, "Hong Kong is strategically located at the heart of Asia, and is the connecting bridge between Mainland China and the rest of the world. With a renowned rule of law system and a simple and low tax regime, Hong Kong is naturally the best base for Malaysian companies which have an interest in the huge Mainland Chinese market. The CDTA will provide Malaysian companies an added impetus to tap into this market by maximising their financial returns through the agreement."
Other speakers at the seminar were the Senior Deputy Under Secretary, Tax Analysis Division, Ministry of Finance of Malaysia, Ms Khodijah Abdullah; the Chair of the Taxation Faculty Executive Committee of the Hong Kong Institute of Certified Public Accountants, Ms Florence Chan; the Executive Director, Mergers & Acquisitions/International Tax Services, PricewaterhouseCoopers of Malaysia, Ms Pauline Lum; and the Head of Investment Promotion at the HKETO in Singapore, Mr Melvin Lee.
The agreement was signed by the Financial Secretary, Mr John C Tsang, when he visited Malaysia in April 2012. It came into force in December 2012 and applies in Hong Kong for any year of assessment beginning on or after April 1, 2013.
Ends/Friday, April 25, 2014
Issued at HKT 12:47
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