Hong Kong and Indonesia have agreed to automatic exchange of financial account information in tax matters (AEOI), a Hong Kong government spokesperson announced June 16.
Typically, under such a tax information exchange agreements, Hong Kong would agree to automatically exchange with Indonesia financial account information on accounts in Hong Kong held by the tax residents of Indonesia while the Indonesia would agree to automatically exchange with Hong Kong the financial account information of accounts in Hong Kong held by Indonesian tax residents. Such exchanges are designed to thwart tax avoidance.
“We have been seeking to expand Hong Kong’s AEOI network with our tax treaty partners. Including the agreement with Indonesia, Hong Kong now has 13 AEOI partners. The others are Belgium, Canada, Guernsey, Ireland, Italy, Japan, Korea, Mexico, the Netherlands, Portugal, South Africa, and the United Kingdom,” the spokesperson said.
The spokesperson added that Hong Kong also plans to extend the application of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters to Hong Kong.
“An amendment bill will be introduced into the Legislative Council by late 2017. This will help further expand our AEOI network,” the spokesman said.