On Friday 24 February 2012, Jersey's Chief Minister, Senator Ian Gorst, and Hong Kong's Secretary for Financial Services and the Treasury, Professor K. C. Chan, signed a double taxation agreement ("DTA") jointly.
This DTA represents strong progress for Jersey's business development in the Hong Kong Special Administrative Region of the People's Republic of China and follows closely on from the approval of both Jersey and Guernsey as approved jurisdictions for the Hong Kong Stock Exchange, both for fund vehicles and trading companies.
Investment from both Hong Kong and China in Jersey remains significant, with nearly GBP 7 billion of banking deposits in the Bailiwick coming from Asia, representing over 4% of the total.
Senator Gorst was "delighted to have signed this DTA with Hong Kong". Jersey's Assistant Chief Minister for External Affairs, Senator Sir Philip Bailhache, also welcomed the DTA, hoping that his visit to Hong Kong later this year "will encourage the business sectors to profit from the agreement and expand their presence overseas".
Sean Cheong, head of Collas Crill's Singapore office, noted that "the signing of this DTA demonstrates the value of the Channel Islands to Asia. We can expect further exciting developments between the two regions and this DTA shows the importance of maintaining a gateway in Asia to allow Channel Island firms and businesses the chance to perform".
This DTA represents Jersey's third based on the OECD Model Convention, following DTAs with Malta and Estonia, as well as earlier, more limited, DTAs with Guernsey, the UK and France.
Guernsey itself is due to announce the signing on 12 March 2012 of a DTA between it and Malta, whilst negotiations are at an advanced stage with each of Bahrain, the Isle of Man, Jersey (to revise the existing DTA), Monaco, Qatar and Singapore. The first stage of negotiations for a DTA between Guernsey and Hong Kong will open in March 2012.
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