The legislative council passed a bill on 7 June 2017 that expands the list of reportable jurisdictions under the common reporting standard (CRS) from two to 75 countries. The bill will come into effect on 1 July 2017.
The newly added CRS reportable jurisdictions include all EU Member States, all Hong Kong’s tax treaty partners that have committed to CRS, and other jurisdictions that have expressed an interest to the Organisation for Economic Co-operation and Development (OECD) in exchanging CRS information with Hong Kong (with Turkey added to the originally proposed list).
For the new reportable jurisdictions, account information generally will need to be provided to the Inland Revenue Department (IRD) as of 1 July 2017. There are special rules for Japan and the UK with a due date of 1 January 2017, and for Korea (1 July 2018). The first CRS reporting to the IRD will be due in May 2018.
Given the fast-approaching effective date, financial institutions need to consider timely implementing the required operational and system enhancements. It is also important for financial institutions to provide up-to-date training to front-line staff and continuous customer communication, to comply with the latest requirements.
Read a June 2017 report prepared by the KPMG member firm in Hong Kong
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