Malta and Hong Kong sign a Double Taxation Agreement

Ministry of Foreign Affairs

An Agreement between the Government of Malta and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China for the avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income was signed ion Hong-Kong on Tuesday, November 8, 2011 by the Secretary for Financial Services and the Treasury of Hong Kong SAR, Professor K C Chan and by the Ambassador for Malta to China, Dr Joseph Cassar and The Secretary for Financial Services and the Treasury, Professor K C Chan.

The Agreement will provide investors from both countries with more attractive conditions for investment in Malta or Hong Kong SAR. The provisions of this DTA are in line with current internationally accepted standards and, in fact, the negotiations took into account the OECD Model Tax Convention on Income and on Capital and recent tax treaties concluded by Malta and Hong Kong SAR.

During the signing ceremony, Ambassador Cassar said the new agreement should greatly facilitate investment opportunities and will further co-operation between the tax administrations of Malta and Hong Kong with a view to combating tax evasion and avoidance.  He recalled that discussions on this agreement had commenced during a working visit to Hong Kong by Parliamentary Secretary Hon Dr Jason Azzopardi in January 2010. Follow-up discussions between high officials from Tax Administration officials from Malta and Hong Kong were conducted in a swift, friendly, cooperative and constructive atmosphere of mutual understanding, with frank exchange of information and ideas with consensus reached on a text agreed in a relatively short period of time. Ambassador Cassar expressed admiration and gratitude for the great effort made by these high officials and augured that the relations between Malta and Hong Kong SAR be further enriched with agreements in other sectors.

Professor K C Chan said the agreement just signed with Malta was the 22nd comprehensive agreement for the avoidance of double taxation (CDTA) concluded by Hong Kong with its trading partners and hoped that this would help create a more attractive investment climate for genuine business transactions, at the same time it introduces certain requirements to prevent tax evasion or abuse. The Secretary for Financial Services and the Treasury joined the Maltese Ambassador in thanking the officials from the Tax Authorities in Malta and Hong Kong who were involved in the negotiations.  

Earlier on Tuesday, Ambassador Cassar paid a courtesy call on Mr Tony Nguyen, Director of Protocol of the Hong Kong Government Secretariat who is responsible for liaising with and providing host government services to the sizeable Consular Corps represented in the Hong Kong Special Administrative Region.

Mr Nguyen informed Ambassador Cassar that many foreign dignitaries visit Hong Kong each year and that the number of such visits has grown since 1997 since foreign Heads of State, Heads of Government or senior Ministers often included Hong Kong when visiting China to discuss the enhancement of relations between their country and the Hong Kong SAR and to see the "One Country, Two Systems" principle in operation. Ambassador Cassar noted that there were many historical ties between Malta and  Hong Kong and hoped that these would continue to be strengthened future economic, commercial and political exchanges between them

Ambassador Cassar later had the opportunity to meet entrepreneurs from Hong Kong and Macau interested in conducting business with Malta. Ambassador Cassar informed the business representatives of the new DTA with Hong Kong while highlighting those areas of social and economic development that made Malta so attractive to foreign investors.

The Deputy Head of Mission in Beijing, Counsellor Charles Sultana and Malta’s Honorary Consul in Hong Kong, Mrs Vivien Chou Chen accompanied Ambassador Cassar during his talks and at the signing ceremony.