On April 25 2014 Hong Kong gazetted the tax information exchange agreement (TIEA) with the United States. The agreement will take effect after the relevant legislative procedures have been completed. The OECD has been encouraging the conclusion of such agreements as part of its aim to increase the level of tax transparency and information exchange on a global basis.
The agreement will provide the basis for an intergovernmental agreement between Hong Kong and the US to ensure that the US Foreign Account Tax Compliance Act (FATCA) can be put into effect. The FATCA is due to come into effect on July 1, 2014 and will require certain information in respect of accounts of US citizens with foreign financial institutions to be exchanged with the US.
