Tax Information Exchange Agreement (TIEA)
A Tax Information Exchange Agreement (TIEA) is a bilateral agreement between two countries that facilitates the exchange of information related to tax matters. TIEAs are intended to enhance transparency and cooperation in tax matters, helping countries combat tax evasion and avoidance.
Under a TIEA, the countries involved agree to share information on taxpayers, financial accounts, and transactions upon request, which can include data about income, capital gains, and other relevant financial information. This cooperation helps tax authorities enforce compliance with tax laws and improve tax revenue collection.
For example, if Country A suspects that a taxpayer in its jurisdiction has undisclosed income held in Country B, Country A can request specific information from Country B under the terms of the TIEA. This agreement promotes international cooperation and supports the global effort to improve tax compliance.
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