Exchange Database
China, US pact to curb offshore tax evasion
Under an agreement announced on June 26 by the US Treasury, US financial accounts will report their taxes directly to the Chinese government, which will then file them to the IRS. In the past, the accounts were only required to be reported to the foreign country's government. The two countries agreed on the terms, but are reviewing before officially signing it. The new agreement will remove the threat of blacklisting or penalties that have been hanging over Chinese financial institutions, including institutions in Hong Kong, the US and other subsidiaries in the Chinese mainland.
Outcomes:
The agreement between China and the United States for US financial accounts registered at banks in China to send their tax reports to the US Internal Revenue Service (IRS) to curb offshore tax evasion will have positive effects for China, experts said. The agreement will also enable Beijing to obtain information on mainland taxpayers in the US to help fight against tax evasion and corruption.
Government?:
Yes
Type of Exchange:
business
Partners:
US Treasury
IRS
Chinese government
Participants (Types):
US Treasury members, IRS agents, Chinese government officials
Exchange Date:
Thursday, June 26, 2014
Continuing:
No
Level of Government:
national
Location:
Washington, DC
*If you know more about this exchange, please contact us.