Explanatory note

Under the Agreement with the Government of the Hong Kong Special Administrative Region of the People’s Republic of China scheduled to this Order, profits derived from the business of international shipping transport by an enterprise of the United Kingdom or of the Hong Kong Special Administrative Region shall be exempt from tax in the area of the other Contracting Party. This exemption also applies to profits derived from participation in a pool, joint business or international operating agency, to gains derived from the alienation of ships or moveable property, and to capital represented by such ships and moveable property.

The Agreement will enter into force when each Contracting Party has notified the other of the completion of the procedures required by its law to bring it into force. The Agreement will then take effect in the United Kingdom for any financial year beginning on or after 1st April in respect of corporation tax, and for any year of assessment beginning on or after 6th April for income tax and capital gains tax, in the calendar year following that in which it enters into force. The date of entry into force will in due course be published in the London, Edinburgh and Belfast Gazettes.