Singapore and Hong Kong signed anagreement here on Friday to avoid double taxation on income from operating ships or aircraft in international traffic, according tothe Ministry of Finance (MOF) of Singapore.

The ministry said that the agreement provides for income derived from the operation of ships and aircraft in international traffic by Singapore shipping and airline enterprises to be exemptfrom Hong Kong tax.

Similarly, income derived from the operation of ships and aircraft in international traffic by Hong Kong shipping and airline enterprises would be exempt from Singapore tax, it said.

The agreement will help facilitate trade and enhance economic ties between Singapore and Hong Kong, said the MOF.

Besides the pact signed on Friday, Singapore has inked similar agreement with six countries. 

(People's Daily November 29, 2003)