Secretary for Commerce and Economic Development Algernon Yau Ying-wah (second left) and Minister of Finance and National Economy of Bahrain Shaikh Salman bin Khalifa Al Khalifa (second right) sign a comprehensive avoidance of double taxation agreement in Manama on March 3, 2024. (PHOTO / HKSAR GOVERNMENT)

HONG KONG – China’s Hong Kong Special Administrative Region government signed on Sunday a comprehensive avoidance of double taxation agreement with Bahrain as the city continues to expand its CDTA network, particularly with tax jurisdictions participating in the Belt and Road Initiative.

Under the agreement, Hong Kong companies can enjoy double taxation relief as any tax paid in Bahrain in accordance with the CDTA will be allowed as a credit against the tax payable in Hong Kong for the same income, the HKSAR government said in a statement, noting that this is the 49th CDTA that the city has concluded.  

Secretary for Commerce and Economic Development Algernon Yau Ying-wah, who was on an official visit to Manama, signed the CDTA with Bahrain on behalf of the HKSAR government. Representing the Government of Bahrain was Minister of Finance and National Economy of Bahrain Shaikh Salman bin Khalifa Al Khalifa

"Bahrain is one of the economies participating in the Belt and Road Initiative. I have every confidence that this CDTA will further promote economic and trade connections between Hong Kong and Bahrain, and offer additional incentives for the business sectors of both sides to do business or make investments,” Secretary for Financial Services and the Treasury Christopher Hui Ching-yu was quoted as saying in the statement.

Hui said Hong Kong will continue to negotiate with trading and investment partners to expand its CDTA network.

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“This could enhance the attractiveness of Hong Kong as a business and investment hub, and consolidate the city's status as an international economic and trade center," he added.

Secretary for Commerce and Economic Development Algernon Yau Ying-wah, who was on an official visit to Manama, signed the CDTA with Bahrain on behalf of the HKSAR government. Representing the Government of Bahrain was Minister of Finance and National Economy of Bahrain Shaikh Salman bin Khalifa Al Khalifa.

Th agreement will come into force after the HKSAR and Bahrain complete ratification procedures.

Riyadh visit

Meanwhile, Secretary for Innovation, Technology and Industry Sun Dong led a delegation of representatives from the innovation and technology industry in a visit to Riyadh, Saudi Arabia on March 3. They visited King Abdulaziz City for Science and Technology and met with its president, Munir Eldesouki.

Secretary for Innovation, Technology and Industry Sun Dong (fourth right), and a delegation of representatives from the innovation and technology industry, visit The Garage in King Abdulaziz City for Science and Technology in Riyadh on March 3, 2024. (PHOTO / HKSAR GOVERNMENT)

The delegation was briefed on the tech city's innovative projects, including the Saudi semiconductor and genome programs and water harvesting from thin air. They also visited an innovation center for promoting advanced manufacturing and The Garage, an accelerator providing support to local and international emerging start-ups in Riyadh.

Sun noted that support for start-ups is essential to building a vibrant I&T ecosystem. Hong Kong's two I&T flagships--the Hong Kong Science and Technology Parks Corporation and Cyberport--have been committed to providing comprehensive support to I&T start-ups, including incubation programs, rent concessions, workspace, shared facilities, subsidy grants, and marketing and business development support.

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Sun then met with Vice-Chairman of the Saudi Chinese Business Council Anas Mohammed Alfadda to brief him on Hong Kong's latest I&T developments and business opportunities.

Sun said that he hoped, through this visit of Hong Kong's delegation, to build up partnerships with the Saudi business and technology sectors, and invited Saudi enterprises and investors to explore investment opportunities in Hong Kong.

Secretary for Innovation, Technology and Industry Sun Dong (third left), and a delegation of representatives from the innovation and technology (I&T) industry, tour The Garage in King Abdulaziz City for Science and Technology in Riyadh on March 3, 2024. (PHOTO / HKSAR GOVERNMENT)

Members of the delegation include Chief Executive Officer of the HKSTP Corporation Albert Wong, Chief Executive Officer of the Hong Kong Cyberport Management Company Ltd Peter Yan, and representatives of more than 10 technology enterprises from the two I&T flagships and related industries.

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They will continue their trip in Riyadh on Monday to attend LEAP 2024 technology conference.