Jersey and Hong Kong to do more business

The Bailiwick of Jersey in the English Channel and Hong Kong have signed a Double Taxation Agreement to avoid double taxation and prevent fiscal evasion in both states.

It is the 23rd comprehensive agreement for the avoidance of double taxation concluded by Hong Kong.

The agreement was signed by Chief Minister Senator Ian Gorst, Jersey’s head of government, and Hong Kong’s Secretary for Financial Services and the Treasury Prof. K.C. Chan.

The agreement is expected to bring significant commercial benefits to Jersey’s finance industry. It will also strengthen the ability of Jersey to exchange requested tax information with Hong Kong,

It includes the latest Organisation for Economic Cooperation & Development standard on the exchange of information. It will come into force after the completion of ratification procedures on both sides.

Investments from Hong Kong and China in Jersey remains substantial with some US$11 billion in banking deposits in Jersey originating from Asia. The first Chinese company in Jersey was registered in 1994. A quarter of the Chinese companies that have listed in London have done so through Jersey.

Often described as one of the Channel Islands, Jersey is a self-governing parliamentary democracy under a constitutional monarchy, with its own financial and legal and judicial systems. It has a population of some 100,000 persons, many of whom live in the capital, Saint Helier.