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HONG KONG, March 20 (Xinhua) -- Hong Kong signed an agreement with Brunei for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes, the HK Special Administrative Region government said on Saturday.According to an official news release, Financial Secretary John Tsang signed the deal with Brunei Second Minister of Finance Abdul Rahman Ibrahim on Saturday during his visit to the southeast Asian country.This was the sixth comprehensive agreement for the avoidance of double taxation concluded by Hong Kong.It will eliminate double taxation instances encountered by Hong Kong and Bruneian investors, and bring about tax savings and certainty in tax liabilities in connection with cross-border economic activities.It is also believed to help foster closer economic and trade links between the two places, and provide added incentives for Brunei's enterprises to do business or invest in Hong Kong.Profits of Hong Kong trading companies doing business through a permanent establishment in Brunei may be taxed in both places if the income is Hong Kong sourced. Under the agreement, double taxation is avoided in that any Brunei tax paid by the companies can be deducted from the tax payable in Hong Kong.

BEIJING, Jan. 28 (Xinhua) -- The Chinese government has decided to cut the number of local government liaison offices in Beijing and strengthen supervision to cut cost and root up corruption, a senior official from the Government Offices Administration of the State Council said Thursday.Counties, local government departments, and development zones were ordered to close liaison offices in the capital within six months, the unnamed official quoted a circular issued by the State Council's General Office on Jan. 19 as saying.As of 2006, Beijing has 50 liaison offices representing China's provinces and special economic zones, 295 representing major cities, 146 representing local government departments and 436 representing counties, figures from the administration showed.Liaison offices of provinces, municipalities and autonomous regions and special economic zones could retain their offices in Beijing, while established city-level liaison offices could be kept only after being approved by provincial governments, according to the circular.The official warned local government to guard against loss of state assets when liaison offices were closed saying the assets should be dealt with according to relevant regulations.Liaison offices usually have assets that include apartments, guest houses and hotels, and restaurants.The circular also clarified major functions of retained liaison offices, which should offer "high-quality, frugal and efficient" service for the economic and social development of their localities.The liaison offices should shoulder tasks entrusted by their localities' Communist Party of China (CPC) committees and government, as well as by the central Party and government organs, the official said.They should also cooperate with the Beijing municipal government in maintaining the capital's stability, offer service for institutions and people from their localities, and help to administer and provide training and service for migrant CPC members from their localities who came to work in Beijing, the official said.To enhance supervision and fight corruption, local government should conduct audit on its liaison office each year, and the Government Offices Administration is empowered to conduct spot-check on local government's audit results when necessary, according to the circular.The official said members of the retained liaison offices should be strict with themselves, shun from extravagant receptions and strictly control expenses.The official said "local government liaison offices s played positive role in coordinating work among regions, handling some emergency incidents, and maintaining the capital's stability."However, lax supervision, a swelling number, shoddy quality, vague definition of their functions were problems plaguing these offices, the official said.Some local government liaison officials were even implicated in serious corruption cases and resulted in serious negative social impact, he said.The measures outlined in the circular could "enhance the building of a clean government, building up a good image of the CPC and the government, cutting administrative cost and expenses, and pushing forward the transformation of the liaison offices' functions," the official said.

BEIJING, March 5 (Xinhua) -- China budgets 1.05 trillion yuan (154.4 billion U.S. dollars) of fiscal deficit this year to support economic growth as government revenue will fall significantly short of expenditures, says a government work report to be delivered by Premier Wen Jiabao at the parliament's annual session Friday.The government vowed to keep the debt at "appropriate" level. The total deficit consists of 850 billion yuan in central government deficit and 200 billion yuan in local government bonds, which will be included in local government budgets, reads the report, which was distributed to the media before the opening of the Third Session of the 11th National People' s Congress (NPC). The Third Session of the 11th National People's Congress (NPC) opens at the Great Hall of the People in Beijing, capital of China, March 5, 2010The government will continue to implement the policy of structural tax reductions to expand domestic demand and promote economic restructuring.It will also keep running the package plan for dealing with the global financial crisis, and increase spending to complete work on projects now under construction, improve people's well-being and maintain stability.According to calculation of the Ministry of Finance, the planned budget will take up about 2.8 percent of the GDP.China's fiscal deficit hit 950 billion yuan last year, a record high in six years, but still less than 3 percent of GDP.

SHANGHAI, Jan. 22 (Xinhua) -- China's top political advisor Jia Qinglin Friday asked Shanghai, the economic center of the country, to upgrade its growth pattern through technology innovation and environmental protection.In a working tour in Shanghai, Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference, said the city should use the upcoming World Expo as a "historical chance" to readjust its growth model and strive for stable and relatively fast economic growth. Jia Qinglin (front), chairman of the National Committee of the Chinese People's Political Consultative Conference, inspects the control center of Yangtze River Bridge-tunnel in Shanghai municipality of east China, Jan. 22, 2010The city on Thursday held the 100-day countdown for the six-month-long mega event.Jia stressed the importance of industrial upgrading, brand marketing, research and development during visits to a shipbuilding factory of the China State Shipbuilding Corporation and the Shanghai Zhenhua Port Machinery Co. Ltd.. Jia Qinglin (front L), chairman of the National Committee of the Chinese People's Political Consultative Conference, inspects Shanghai Zhenhua Port Machinery Corp., in Shanghai municipality of east China, Jan. 22, 2010.