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Hong Kong to ratify the agreement with the Spanish tax


Question

I have heard that currently banks of Hong Kong do not exchange information automatically with the Spanish tax agencies, is that so? Do you know if this agreement is finally going to be ratified or not? My question is: is it a reliable destination (without information exchange) for a long term period (years) or not. I also understand that Georgia is a country that has signed the exchange of information agreement of the CRS, even though apparently it was never made effective, is that so? Do you know for how long? Regards

Answer

Up until now, Hong Kong has signed agreements of automatic banking information exchange with 7 countries and Spain is not among them. However, a client should always keep in mind that in the future it is possible that it will be signed. The decision to sign this kind of agreement depends on both countries and their preposition and interest in bilateral exchange of information. It is hard to predict if this kind of agreement will ever take place with Spain because 3 things can happen: it gets signed, it does not get signed or that it happens in a long future. Note that in order for the automatic information exchange agreement to become effective, there must be a bilateral agreement between both countries and if there is not, there will be no exchange of information. 

Georgia recently has joined the list of automatic information exchange countries but has no date to make the first exchanges of information. It all depends on electronic infrastructure of the country and the interest to make the exchanges. From experience it is possible to do so from 2020 onwards but as with Hong Kong it is possible that it only will sign bilateral agreements with countries that can offer valuable in tax sense information. 

You can check the information of the countries that have signed the automatic information exchange agreement and the countries that have signed bilateral agreements with Hong Kong bellow.
Regards

Hong kong intercambio de información automática




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