HONG KONG, Jan. 24 (Xinhua) -- Christopher Hui, secretary for financial services and the treasury of the Hong Kong Special Administrative Region (HKSAR) government, on Wednesday signed a comprehensive avoidance of double taxation agreement (CDTA) with Croatia on behalf of the HKSAR government.

The agreement sets out the allocation of taxing rights between the two jurisdictions and will help investors better assess their potential tax liabilities from cross-boundary economic activities.

Under the agreement, Hong Kong companies can enjoy double taxation relief in that any tax paid in Croatia, whether directly or by deduction, will be allowed as a credit against the tax payable in Hong Kong in respect of the same income.

Noting that Croatia is one of the economies participating in the Belt and Road Initiative, Hui said he is confident that the agreement will further promote economic and trade connections between Hong Kong and Croatia, and offer additional incentives for the business sectors of both sides to do business or make investments.

"Hong Kong will continue to negotiate with trading and investment partners with a view to expanding its CDTA network. 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," Hui added.

The Hong Kong-Croatia agreement is the 48th CDTA that Hong Kong has concluded. Including Croatia, Hong Kong has signed CDTAs with 17 member states of the European Union.