Hong Kong Signs TIEAs With Six Nordic Countries
by Mary Swire, Lowtax.net, Hong Kong
26 August, 2014
On August 22, in Paris, Hong Kong signed tax information exchange agreements (TIEAs) with six Nordic jurisdictions – namely, Denmark, the Faroes, Greenland, Iceland, Norway and Sweden.
Welcoming the agreements, Hong Kong's Secretary for Financial Services and the Treasury, Professor K C Chan, said that the signing of the TIEAs demonstrated the city's continued commitment to fulfill its international obligations on promoting tax transparency, along with its efforts to expand its network of comprehensive double taxation agreements (CDTAs) with its trading and investment partners.
"Since the legal framework for entering into TIEAs with other jurisdictions was put in place in July 2013, Hong Kong has so far signed one TIEA with the United States, followed by these six TIEAs with the Nordic countries," Linda Lai, the Special Representative for Hong Kong Economic and Trade Affairs to the European Union, said, after signing the agreements.
She added that, "as with CDTAs previously signed, these six TIEAs have adopted highly prudent safeguard measures to protect taxpayers' privacy and confidentiality of information exchanged."
Each of the TIEAs will become effective after the completion of ratification procedures by Hong Kong and the respective Nordic jurisdictions. In the case of Hong Kong, orders are required to be made by the Chief Executive in Council under the Inland Revenue Ordinance. The orders are then subject to negative vetting by the Legislative Council.
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