Under the common reporting standard (CRS) framework, financial institutions in Hong Kong are required to identify and report to the Inland Revenue Department (IRD) the financial accounts held by tax residents of overseas reportable jurisdictions (including individuals, entities, and controlling persons of certain entity accounts) on an annual basis. The IRD then will exchange this information with the tax authority in the relevant overseas jurisdiction. Reporting will begin from 2018 with respect to 2017 account information.
Over 100 jurisdictions have committed to CRS, but the IRD will exchange information only with jurisdictions with which Hong Kong has a tax treaty or a tax information exchange agreement in place, and with which Hong Kong has entered into a supplemental agreement providing for such exchange. To facilitate compliance with the CRS requirements, the IRD recently published guidance for financial institutions to assist them in complying with the CRS obligations.
Read a September 2016 report [PDF 200 KB] prepared by the KPMG member firm in Hong Kong
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