CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Hong Kong, USA Work Toward FATCA IGA

Hong Kong, USA Work Toward FATCA IGA

by Mary Swire, Tax-News.com, Hong Kong

27 March 2014


On March 25, Hong Kong and the United States signed a tax information exchange agreement (TIEA), which will provide the necessary basis for Hong Kong to enter into an intergovernmental agreement (IGA) to adhere to the United States' Foreign Account Tax Compliance Act (FATCA).

Hong Kong's Secretary for Financial Services and the Treasury, Professor K C Chan, and the Consul-General of the US to Hong Kong and Macau, Clifford A Hart, signed the TIEA, which is the first such agreement signed by Hong Kong after the legal framework for entering into TIEAs on a standalone basis with other jurisdictions was put in place in July last year.

Hong Kong is now able to complete TIEAs, providing for the exchange of information (EoI) by the Inland Revenue Department, upon request from another jurisdiction, in tax matters. Previously, EoI provisions were included solely in comprehensive double taxation agreements (CDTAs).

Welcoming the agreement, Professor Chan said that the signing of the TIEA with the US demonstrates Hong Kong's continued commitment to fulfilling its international obligations by promoting tax transparency. He added that Hong Kong would continue its efforts to expand the network of CDTAs.

Professor Chan said that "the TIEA with the US has adopted highly prudent safeguard measures to protect taxpayers' privacy and the confidentiality of information exchanged."

Under FATCA, foreign financial institutions are required to report financial information in respect of their US clients.

Subject to the completion of ongoing discussions, it was confirmed that Hong Kong intends to enter into an IGA with the US to lay down the arrangements which help facilitate compliance by financial institutions in Hong Kong.

TAGS: compliance | Foreign Account Tax Compliance Act (FATCA) | tax | business | tax information exchange agreement (TIEA) | tax compliance | FATCA | banking | offshore | agreements | offshore banking | Hong Kong | United States | Compliance | Tax

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »