HK Cap. 112N — Specification of Arrangements (Government of New Zealand concerning Air Services) (Double Taxation) Order

Specification of Arrangements (Government of New Zealand concerning Air Services) (Double Taxation) Order ( Cap. 112, section 49 ) (Enacting provision omitted— E.R. 3 of 2020 ) [27 September 1996] (Format changes— E.R. 3 of 2020 ) 1. Declaration under section 49 For the purposes of section 49 of the Ordinance it is declared that the arrangements referred to in section 2 have been made with the Government of a territory outside Hong Kong with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory, and that it is expedient that those arrangements should have effect. 2. Arrangements specified The arrangements mentioned in section 1 are in Article 8A of the Agreement between the Government of Hong Kong and the Government of New Zealand concerning Air Services done at Hong Kong on 22 February 1991, as amended by an exchange of notes between the two Governments on 20 July 1996 and 24 July 1996 as specified in the Schedule and having effect according to the tenor of that Agreement and the exchange of notes. Schedule [ s. 2 ] Article 8A of the Agreement between the Government of Hong Kong and the Government of New Zealand concerning Air Services Done at Hong Kong on the 22nd day of February 1991, as amended by an exchange of notes on 20 July 1996 and 24 July 1996. “ARTICLE 8A Avoidance of Double Taxation (1) Revenues, gross receipts, 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 revenues, receipts, income or profits imposed in the area of the other Contracting Party. (2) For the purpose of this Article: (a) the term “ revenues, gross receipts, income or profits derived from the operation of aircraft in international traffic ” shall include revenues, gross receipts, income or profits from the operation of aircraft for the carriage of persons, livestock, goods, mail or merchandise including: (i) the lease of aircraft on a charter basis; (ii) the sale of tickets for and the provision of services connected with such carriage, either for the airline itself or for any other airline; (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 an airline incorporated and having its principal place of business in the area of that Contracting Party. (3) This Article shall not have effect as long as an Agreement for the avoidance of double taxation with respect to taxes on income providing for similar exemptions shall be in force between the Contracting Parties.”.