Hong Kong and the United States signed a tax information exchange agreement (TIEA) on March 25 2014. This will provide the legal framework within which an intergovernmental agreement (IGA) can be signed to enable the transfer of information in relation to the requirements of the US Foreign Account Tax Compliance Act (FATCA). The agreement contains measures to protect taxpayer privacy and the confidentiality of the information exchanged.
The FATCA legislation requires foreign financial institutions to report relevant financial data in respect of their US clients. The two countries intend to conclude an IGA to put in place the necessary arrangements to enable compliance with FATCA by financial institutions in Hong Kong.
