Hong Kong, Japan Improve Their Tax Info Exchange
On December 10, Hong Kong and Japan exchanged notes regarding the exchange of information (EOI) provisions in their existing double taxation agreement (DTA) dated November 9, 2010.
“The purpose of the exchange of notes with Japan is to expand the coverage of tax types under the EOI arrangement of the DTA, so as to fulfill our international obligation to meet global standards for enhancing tax transparency,” said Hong Kong’s Secretary for Financial Services and the Treasury, Professor K C Chan.
Since the passage of the Inland Revenue (Amendment) Bill 2013 in July 2013, the EOI arrangement under Hong Kong’s comprehensive DTAs and tax information exchange agreements in terms of tax types has been enhanced.
The scope of tax types under EOI provisions can now cover more than just income tax, and, in the case of the DTA with Japan, it has been extended also to Japan’s inheritance, gift and consumption taxes.
The exchange of notes will come into force after the completion of ratification procedures and notification by both sides.