The Organisation for Economic Cooperation and Development (OECD) today announced that six treaty partners of Hong Kong have signed a competent authority agreement (CAA) with Hong Kong (China) bringing the total number of CAAs to nine. The jurisdictions include Belgium, Canada, Guernsey, the Netherlands, Italy, and Mexico (joining Japan, Korea, and the United Kingdom). More agreements are expected in the coming months so that Hong Kong (China) will be able to exchange data with all interested and appropriate partners.
As explained in today’s OECD release, Hong Kong in 2014 indicated its support for implementing the automatic exchange of financial account information (AEOI) on a reciprocal basis with appropriate partners with a view to commencing the first exchanges by the end of 2018. In order to exchange financial account information with a jurisdiction, Hong Kong must have a tax treaty or tax information exchange agreement that allows for AEOI and also must have signed a competent authority agreement with that jurisdiction.
The OECD today also announced that Panama has deposited its instrument of ratification for the “Convention on Mutual Administrative Assistance in Tax Matters” that puts into place a pre-condition for delivering on its commitment to start exchanging common reporting standard (CRS) information in 2018. The convention will enter into force for Panama on 1 July 2017.
© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.