Guernsey has signed a Double Taxation Arrangement (DTA) with Hong Kong – the seventh jurisdiction the former has signed full DTAs with.
Prior to this DTA, Guernsey has had a DTA with the UK for many years and has signed DTAs with Malta, in 2012, and earlier this year with the Isle of Man, Jersey, Qatar and Singapore.
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The DTA with Hong Kong was signed for Guernsey by the Chief Minister, Peter Harwood, who commented that this was a further important step in growing the business links between Guernsey and the Far East.
Harwood said: "The signing of this DTA, combined with the visit of the Chinese Ambassador to the UK to Guernsey this week, recognizes the importance attached to Guernsey’s business relationship with the Far East."
"The agreement is expected to bring significant commercial benefits to our finance sector, resolving issues relating to potential double taxation, and leading to greater opportunities for new business," Harwood said.
Guernsey Finance CEO, Fiona Le Poidevin, said: "The DTA between Guernsey and Hong Kong further deepens the relationship and offers significant potential for expanding financial services business between the two jurisdictions."
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By GlobalData"The DTA means that individuals or companies with ‘home’ as one jurisdiction but with interests in the other jurisdiction will have mechanisms in place to prevent them from being taxed by both sets of authorities on the same income.
"This clarity and certainty on matters of taxation makes it more attractive to conduct business between the two jurisdictions, especially in terms of investment funds, fiduciary services and intellectual property," Le Poidevin said.
The signing of the Hong Kong DTA is Guernsey’s sixth since the beginning of 2012, all of which meet the international standards on international taxation.
In addition, Guernsey has now signed 41 Tax Information Exchange Agreements (TIEAs), the most recent being with the British Virgin Islands (BVI), signed by the Chief Minister last week. This network of agreements covers the majority of G20 countries and EU Member States.
