An order made by the Chief Executive in Council to implement the Agreement with Luxembourg for the Avoidance of Double Taxation was gazetted here on Friday.

It is Hong Kong's fourth comprehensive agreement for the avoidance of double taxation.

Hong Kong Secretary for Financial Services and the Treasury Professor KC Chan and Luxembourg Economy and Foreign Trade Minister Jeannot Krecke signed the agreement in Hong Kong on Nov. 2.

The pact will eliminate double taxation instances encountered by Hong Kong and Luxembourg investors, and bring about tax savings and certainty in tax liabilities in connection with cross-boundary economic activities.

It will also help foster closer economic and trade links between the two sides and provide added incentives for Luxembourg enterprises to do business or invest in Hong Kong.

The agreement came into force in Luxembourg on Jan. 1 and will be implemented in Hong Kong on April 1.

(Xinhua News Agency February 2, 2008)