Apr 2014, Issue 4
Hong Kong's first tax information exchange agreement was signed with the US
Hong Kong and the US signed a tax information exchange agreement (TIEA) on 25 March 2014, the first of its kind signed by Hong Kong. The HK-US TIEA will provide the legal basis for the implementation of the Foreign Account Tax Compliance Act (FATCA) in Hong Kong, which will be effective from 1 July 2014. Further to the TIEA, Hong Kong is under discussions with the US to enter into an intergovernmental agreement to facilitate financial institutions in Hong Kong to comply with FATCA.
As the pressure for greater tax transparency continues to grow and that automatic exchange of information (EoI) is now becoming the latest international standard on EoI, it is expected that the EoI regime in Hong Kong will continue to evolve. Multinational corporations with cross-border transactions/operations should stay tuned for the development in this area and be prepared to assess the possible impact of the changing EoI landscape on them. Other issues of Hong Kong Tax News Flash
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