Explanatory note

Under Article 14 of the Agreement between the United Kingdom of Great Britain and Northern Ireland and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China concerning Air Services, which is scheduled to this Order, income or profits derived from the business of international air transport by an airline of the United Kingdom or the Hong Kong Special Administrative Region, which are subject to tax in the area of one of the Contracting Parties, shall be exempt from tax in the area of the other Contracting Party.

The Article will enter into force when each Contracting Party has notified the other of the completion of its legislative procedures required by law to bring it into force. The Article will then take effect in the United Kingdom on 1st April 1998 in respect of corporation tax and on 6th April 1998 in respect of income tax. The date of entry into force will in due course be published in the London, Edinburgh, and Belfast Gazettes.