Beta
HK Cap. 112AU
HK Cap. 112AU — Specification of Arrangements (Government of the Republic of Iceland) (Avoidance of Double Taxation on Income from Aircraft Operation) Order
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Specification
of
Arrangements (Government
of
the Republic
of
Iceland) (Avoidance
of
Double Taxation
on Income
from
Aircraft
Operation)
Order ( Cap. 112, section
49 ) (Enacting provision omitted— E.R. 4 of
2020 ) [17 June
2005] (Format changes— E.R. 4 of 2020 ) 1. Declaration under section 49
For the purposes of section 49 of the Ordinance, it is declared—
(a) that the arrangements specified in section 2 have been made with the Government of the Republic of Iceland with a view to affording relief from double taxation in relation to income tax and other taxes of a similar character imposed by the laws of the Republic; and
(b) that it is expedient that those arrangements should have effect. 2. Arrangements specified The arrangements specified for the purposes of section
1(a) are the arrangements in Article 10 of the Agreement between the
Government of the Hong Kong Special Administrative Region of the People’s Republic of
China and the Government of the Republic of Iceland concerning Air Services done in
duplicate at Reykjavik on 9 August 2004 in the English and Icelandic languages*, the
English text of which Article is reproduced in the Schedule .
*
The Agreement between the Government of
the Hong Kong Special Administrative Region of the People’s Republic of
China and the Government of the Republic of Iceland concerning Air Services
was established in a single original in the English and Icelandic languages.
Both the English and Icelandic language texts of the Agreement are available
for inspection at the Transport and Logistics Bureau of the Government of
the HKSAR. ( L.N. 130 of 2007 ; L.N. 144 of
2022 )
Schedule [ s. 2 ] Article
10 of
the Agreement
between
the
Government of
the
Hong
Kong
Special
Administrative
Region of
the
People’s Republic
of China
and
the Government
of
the Republic
of
Iceland
concerning
Air
Services ARTICLE 10 Avoidance of Double
Taxation
(1) Income or profits derived from the operation of aircraft in international
traffic by an airline of one Contracting Party, including participation in a pool
service, a joint air transport operation or an international operating agency, which
are subject to tax in the area of that Contracting Party shall be exempt from income
tax, profits tax and all other taxes on income or profits imposed in the area of the
other Contracting Party.
(2) Capital and assets of an airline of one Contracting Party relating to the
operation of aircraft in international traffic shall be exempt from taxes of every
kind and description on capital and assets imposed in the area of the other
Contracting Party.
(3) Gains from the alienation of aircraft operated in international traffic and
movable property pertaining to the operation of such aircraft which are received by
an airline of one Contracting Party shall be exempt from any tax on gains imposed in
the area of the other Contracting Party.
(4)
For the purposes of this Article:
(a)
the term “ income or profits ” includes
revenues and gross receipts from the operation of aircraft for the carriage
of persons, livestock, goods, mail or merchandise in international traffic
including:
(i) the charter or rental of aircraft; (ii) the sale of tickets or similar documents, and the provision of services
connected with such carriage, either for the airline itself or for any other
airline; and (iii) interest on funds directly connected with the operation of aircraft in
international traffic;
(b)
the term “ international
traffic ” means any carriage by an aircraft except when such carriage
is solely between places in the area of the other Contracting Party;
(c)
the term “ airline
of one Contracting Party ” means, in the case of the Hong Kong Special
Administrative Region, an airline incorporated and having its principal place of
business in the Hong Kong Special Administrative Region and, in the case of
Iceland, an airline substantially owned and effectively controlled by the
Government of Iceland or its nationals;
(d)
the term “ competent
authority ” means, in the case of the Hong Kong Special Administrative
Region, the Commissioner of Inland Revenue or his authorised representative, or
any person or body authorised to perform any functions at present exercisable by
the Commissioner or similar functions, and, in the case of the Republic of
Iceland, the Ministry of Finance, or their authorised representative.
(5) The competent authorities of the Contracting Parties shall, through
consultation, endeavour to resolve by mutual agreement any disputes regarding the
interpretation or application of this Article. Article 18 (Settlement of Disputes)
shall not apply to any such dispute.
(6)
Notwithstanding Article 22 (Entry into Force) each Contracting Party shall
notify the other (in writing) of the completion of the procedures required by its
law for the bringing into force of this Article and the Article shall enter into
force on the date of the latter notification. The Article shall then be
applied:
(a) in the Hong Kong Special Administrative Region, for any year of assessment
beginning on or after 1st April in the calendar year next following that in
which this Agreement or this Article enters into force, whichever is the
later;
(b) in the Republic of Iceland, for any year of assessment beginning on or
after 1st January in the calendar year next following that in which this
Agreement or this Article enters into force, whichever is the later.
(7)
Notwithstanding Article 20 (Termination) where notice of termination of this
Agreement is given under that Article, this Article shall cease to have
effect:
(a) in the Hong Kong Special Administrative Region, for any year of assessment
beginning on or after 1st April in the calendar year next following that in
which notice is given;
(b) in the Republic of Iceland, 1st January in the calendar year next following
that in which notice is given.
(8) This Article shall not have effect so long as an agreement for the avoidance of
double taxation with respect to taxes on income, providing for similar exemptions to
those in this Article has effect between the Contracting Parties.