Hong Kong today (June 24, Yerevan time) signed a comprehensive avoidance of double taxation agreement (CDTA) with Armenia in Yerevan, signifying the sustained efforts of the Hong Kong Special Administrative Region (HKSAR) Government in expanding Hong Kong's CDTA network, in particular with tax jurisdictions participating in the Belt and Road Initiative.  

     The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "This CDTA is the 50th agreement that Hong Kong has concluded. It marks a major milestone in the Government's drive to expand Hong Kong's tax treaty network. We will continue to sign CDTAs with more trading and investment partners to promote closer economic and trade ties between Hong Kong and the rest of the world. This will enhance the attractiveness of Hong Kong as a business and investment hub, and consolidate the city's status as an international economic and trade centre.

     "This CDTA sets out the allocation of taxing rights between Hong Kong and Armenia and will help investors better assess their potential tax liabilities from cross-border economic activities. I have every confidence that the CDTA will encourage the business sectors of both sides to do business or make investments."

     In accordance with the Hong Kong-Armenia CDTA, Hong Kong companies can enjoy double taxation relief in that any tax paid in Armenia, whether directly or by deduction, will be allowed as a credit against the tax payable in Hong Kong in respect of the same income, subject to the provisions of the tax laws of Hong Kong.  

     Moreover, Armenia's withholding tax rate for Hong Kong residents on dividends will be capped at 0 per cent or 5 per cent (depending on the percentage of their shareholdings), while that on interest and royalties will be capped at 5 per cent. 

     The Commissioner of Inland Revenue, Mr Tam Tai-pang, signed the CDTA on behalf of the HKSAR Government with the Government of Armenia on the margins of the Sixth High-level meeting of the Asia Initiative hosted by Armenia. Representing the Government of Armenia was the Minister of Finance of Armenia, Mr Vahe Hovhannisyan.  

     The CDTA will come into force after the completion of ratification procedures by both jurisdictions. In Hong Kong's case, it will be implemented by way of an order to be made by the Chief Executive in Council under the Inland Revenue Ordinance (Cap. 112). The order is subject to negative vetting by the Legislative Council.

     The Asia Initiative was launched by the Global Forum on Transparency and Exchange of Information for Tax Purposes of the Organisation for Economic Co-operation and Development in 2021. It focuses on developing tailored solutions to ensure the implementation of tax transparency standards across Asia and enhancing regional co-operation. To date, Hong Kong and 16 other tax jurisdictions have joined the Asia Initiative.    

     Details of the Hong Kong-Armenia CDTA can be found on the Inland Revenue Department's website (www.ird.gov.hk/eng/pdf/Agreement_Armenia_HongKong.pdf).

    

     Hong Kong Customs and the Fire Services Department (FSD) co-organised a counter-terrorism intelligence and hazardous material incident exercise codenamed "WOLFHUNT" this afternoon (June 24) at the Shenzhen Bay Control Point.  

     Over 50 officers from Customs and the FSD participated in the exercise. The exercise simulated the identification of an outgoing light goods vehicle driver who was suspected to be involved in terrorist activities by Customs officers during customs clearance at the Outbound Cargo Examination Building. During the examination, a container carrying suspected hazardous material was found hidden underneath the light goods vehicle, whereupon it was noted that leakage of the hazardous material occurred. Customs officers swiftly activated the contingency response plan. They immediately summoned the FSD and informed the Inter-departmental Counter Terrorism Unit of suspected terrorism-related clues for follow-up action. FSD officers sped to the scene upon being summoned, and the Hazardous Materials Team was deployed to carry out decontamination procedures and handle the hazardous material. 

     The exercise raised the counter-terrorism awareness of frontline officers and their ability to handle counter-terrorism intelligence, while enhancing the co-ordination and communication between the two departments in case of emergency. In the exercise, Customs officers made use of the recently introduced Smart Under Vehicle Robot to assist in cross-boundary vehicle inspections to deter illegal importation of prohibited and controlled items into Hong Kong, or stop transshipments of such items to the Mainland via Hong Kong, protecting the lives and property of citizens as well as safeguarding national security. 

          

The following is issued on behalf of the Legislative Council Secretariat:

     â€‹The Legislative Council Panel on Security observed the Inter-departmental Counter-terrorism Exercise, codenamed Arbalest, at the Hong Kong Convention and Exhibition Centre (HKCEC) today (June 24) to learn more about the work of the Security Bureau (SB) and its disciplined services in counter-terrorism.
 
     The exercise simulated local terrorists launching an attack by activating a hazmat device during an international conference at Bauhinia Room in the HKCEC. A large number of participants were injured and contaminated by hazardous substances. The relevant Government departments took action and successfully unravelled the plot and handled the hazardous substances. Following a briefing by representatives of the Fire Services Department (FSD) and the Hong Kong Police Force (HKPF), Members observed the exercise accompanied by the Secretary for Security, Mr Tang Ping-keung.
 
     During the exercise, HKPF's fully-armed Counter Terrorism Response Unit and the Explosive Ordnance Disposal Bureau sped to the scene to subdue the terrorists and handle the hazardous material agent respectively. The FSD then utilised a robotic dog and drones for search and aerial monitoring at the scene. It also mounted a rescue operation with the Civil Aid Service, the Auxiliary Medical Service and the Hospital Authority, carrying out mass decontamination for the injured and triaged them for treatment. The Government showcased the Fire Services Mobile Command Unit and Mobile Casualty Treatment Centre, as well as the HKPF's new mobile command station and operational tools during the exercise.
 
     Members took the opportunity to exchange views with representatives of the Government regarding counter-terrorism and emergency response efforts of the SB and its disciplined services. They believed the exercise demonstrated the professionalism and excellent capabilities of various disciplined services in effectively and rapidly responding to unforeseen incidents in Hong Kong. The large-scale inter-departmental exercise, which is held twice a year on average, helps enhance the co-ordination and communication among different units.
 
     Members noted that innovative technologies were widely adopted by the disciplined services during the exercise to enhance operational efficiency. These included the Patient Tagging System for Multiple Casualties Incidents equipped with a chip and a QR code on the triage cards, the Indoor Locating Equipment that monitored the movements of firefighters, and the Hazmat Robotic Dog that provided real-time imaging and data analysis of the environment. The latter two were introduced from the Mainland last year. Members suggested that the Government should allocate more resources to continue leveraging technology to enhance crisis management capabilities and ensure the safety of frontline personnel, so as to provide better protection to the lives of the people.
 
     A total of 15 members and non-members of the Panel on Security participated in the visit.

      

The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA), the Hong Kong Association of Banks and the Chinese Banking Association of Hong Kong co-organised a seminar on the banking sector's support measures for small and medium-sized enterprises (SMEs) today (June 24), which was successfully concluded. Supporting organisations included the Trade and Industry Department's Support and Consultation Centre for SMEs, The Hong Kong Mortgage Corporation Limited, The Chinese Banks' Association, Hong Kong Export Credit Insurance Corporation and Hong Kong Productivity Council. The seminar brought together 200 representatives from the banking sector, trade associations and chambers and SME operators (see Annex 1), who have actively exchanged views on the banking sector's support measures as well as diverse services for SMEs.

     Since the introduction of the nine SME support measures by the HKMA and the Banking Sector SME Lending Coordination Mechanism on March 28 this year, around 7 000 SMEs have benefitted from the measures, involving an aggregate credit limit of over HK$15 billion. Today's seminar enabled the banking sector to further understand the needs of SMEs, while at the same time strengthened customers' awareness of the support measures.

     The three panel discussions covered topics including how banks leverage financial technology, including the HKMA's Interbank Account Data Sharing (IADS) initiative, to help SMEs obtain bank financing in an easier and faster manner, and how banks support the business transformation of SMEs. Several SME operators shared experiences and success stories of how they have benefitted from the banks' support in branching out into other markets and expanding their business to different regions (see Annex 2).

     The HKMA will continue to maintain close communication and exchange with the banking and commercial sectors to support the continuous development of SMEs.

          

     The Labour Department (LD) is investigating a fatal work accident that happened in Tai Kok Tsui this afternoon (June 24) in which a man died.

     The LD immediately deployed staff to the scene upon receiving a report of the accident, and is now conducting an investigation to look into its cause.