“TieA with the United States provides the necessary basis for Hong Kong to provide information upon request regarding information reported by Hong Kong financial institutions in the United States under the U.S. Foreign Account Tax Compliance Act (FATCA). Subject to the conclusion of the ongoing talks, Hong Kong intends to conclude an intergovernmental agreement with the United States to determine arrangements that will help facilitate compliance by Hong Kong`s financial institutions. As a complementary measure, the signing of an AERF with the United States will allow the US tax authorities to file an EoI application with the IRD under certain conditions. The main difference between the EIO provisions between an TIEA and a CDA is that a TIEA tends to set out in more detail issues related to the practical implementation of information exchange. For example, the HONG KONG MEMBER STATES ACT has established a list of information that the requesting Party must provide in its EIO requests and contains provisions on the party that should bear the costs incurred by the exchange of information. In summary, the Binding Act BETWEEN Hong Kong and the United States would allow Hong Kong to provide certain information that can be taken into account in the context of a future agreement between Hong Kong and the United States at the request of the U.S. tax authorities. To pass the exams, an administration must have a CDA and a TIEA in place as tools for information sharing. Prior to the passage of the law, Hong Kong could only share tax information with jurisdictions with which it entered into a CDTA. Currently, Hong Kong has concluded CTAs with 29 other jurisdictions, including 11 of its top 20 trading partners. All COMPETENT AUTHORITY agreements between the United States and our exchange partners can be found separately on the Competent Authority Agreements page.
August 2 – The Hong Kong Legislative Council recently passed the Inland Revenue (Amendment) Bill 2013 (the “Act”), which will allow Hong Kong to directly enter into Tax Information Exchange Agreements (TIEAs) with other jurisdictions. The bill also improves and makes more efficient the exchange of information relating to all hong Kong`s comprehensive double taxation agreements (CTAs) with other jurisdictions. The purpose of this Agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Exchange of Information. The signing of the HK-US tieA marks a new era of information exchange in Hong Kong. Although the initial impact of the TIEA BETWEEN HONG AND THE UNITED STATES concerns the implementation of FATCA in Hong Kong, it should not be forgotten that the TIEA can also allow the exchange of tax information between the two governments. This agreement, published in April 2002, is not a binding instrument but contains two model bilateral agreements. Many bilateral agreements are based on this agreement (see below). Countries and territories may also choose to use the wording of the articles of the Model Protocol if they wish to include the provisions on automatic and spontaneous exchange of information in a new TIEA. Country-by-country reporting data are exchanged under bilateral competent authority (CAA) agreements based on double taxation treaties, tax information exchange agreements or the Convention on Mutual Administrative Assistance in Tax Matters, which allow for an automatic exchange of information.
This table lists jurisdictions that are negotiating for a CAA, have complied with bilateral data protection regulations and the U.S. infrastructure review, and have agreed to be included in the list. The table also includes the jurisdictions with which the IRS and the jurisdiction`s competent authority have signed a CAA. 1 Country reports for fiscal years opened in 2016 are exchanged spontaneously. (Joint Statement) PDF In June 2015, the OECD Committee on Fiscal Affairs (CFA) approved a model protocol to the agreement. The standard protocol can be used by legal systems if they wish to extend the scope of their existing TIEAs to the automatic and/or spontaneous exchange of information. An Introduction to Tax Treaties Across Asia In this issue of Asia Briefing Magazine, we look at the different types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties (BITs), double taxation treaties (DTAs) and free trade agreements (FTAs), all of which have a direct impact on companies operating in Asia. In addition, the Hong Kong government announced that the bill will relax the types of taxes to be covered by exchange of information agreements under its CTAs and future TIEAs, and that it will also allow the Tax Administration Commission to disclose all related information in response to a request for exchange of information if the Commission considers that: that information relates to tax notices relating to a period following the entry into force of one of the relevant CTAAs or TIEAs. .