2012-05-25-KPMG_China-税务信息交换协议_-_香港面对的难题_3页_104kb

Hong Kong government is consulting on amending the Inland Revenue Ordinance to allow for standalone Tax Information Exchange Agreements (TIEAs), which facilitate cross-border tax information sharing.

Currently, Hong Kong can only exchange tax information through Double Taxation Agreements (DTAs), limiting its flexibility in international tax cooperation. The Global Forum endorsed TIEAs, citing Hong Kong's need to align with international standards to avoid sanctions, but this could disrupt its DTA expansion efforts with major partners.

The key dilemma is balancing the benefits of enhanced cooperation and compliance risks with potential incentives for future DTA negotiations, posing a challenge to Hong Kong's broader tax and economic objectives.