Hong Kong and the US today signed an inter-governmental agreement that will facilitate conformance with the US Foreign Account Tax Compliance Act by Hong Kong financial institutions.
Under the agreement, these institutions must report the account information of American taxpayers to the US Internal Revenue Service directly.
Reports will be issued from March.
The act is an anti-tax evasion regime to detect taxpayers who use accounts with non-US financial institutions to conceal income and assets from the Internal Revenue Service.
