The agreement between Hong Kong and Italy for the avoidance of double taxation (CDTA) with respect to taxes on income and the prevention of fiscal evasion has entered into force, the Hong Kong Special Administrative Region government news website said here on Friday.
The Secretary for Financial Services and the Treasury K C Chan said the CDTA between Hong Kong and Italy will bolster the economic and trade connections between the two sides, and offer added incentives for companies in Italy to do business or invest in Hong Kong, and vice versa.
Chan also said the entry into force of the CDTA would help address any concerns on the part of the Italian authorities about Hong Kong's commitment to enhancing tax transparency and combating cross-border tax evasion, thus facilitating the removal of Hong Kong from the "blacklist" of Italy as early as possible.
The CDTA between Hong Kong and Italy was signed in January, 2013 and came into force in August, 2015, after completion of ratification procedures on both sides. It will be in effect in respect of Hong Kong tax for any year of assessment beginning on or after April 1, 2016.