Hong Kong and Italian tax authorities have moved closer by signing an agreement on the avoidance of double taxation and the prevention of fiscal evasion.
The Secretary for Financial Services and the Treasury, Professor K C Chan, said, "Hong Kong has all along been committed to expanding its network of comprehensive agreements for the avoidance of double taxation, CDTA's, with trading and investment partners, and has signed 32 CDTA's so far, including this one with Italy.
"The CDTA between Hong Kong and Italy will bolster the economic and trade connections between the two places, and offer added incentives for companies in Italy to do business or invest in Hong Kong, and vice versa."
The CDTA between Hong Kong and Italy has incorporated an article on exchange of information, which is on par with the international standard.
Professor Chan went on to say, "We believe the entry into force of the CDTA between Hong Kong and Italy 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 on August 10, 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.
