On 30 June 2016, the implementation of Automatic Exchange of Information ("AEOI") and Common Reporting Standard ("CRS") in Hong Kong were became effective.
Financial Instituations ("FIs") are required to register with the Hong Kong Inland Revenue Department ("HKIRD") by September 2017 and file the first AEOI returns to the IRD by May 2018. FIs are responsible to monitor their status and procedures for complying with the relevant compliance and reporting obligations under the AEOI regime of HKIRD.
Under the CRS, FIs in a jurisdiction are required to perform due diligence procedures to identify financial accounts held by tax residents of reportable jurisdictions and to collect and furnish the information of such financial accounts to tax authorities in that jurisdiction on an annual basis. In Hong Kong, HKIRD will apply AEOI with the tax authorities of CRS partner jurisdictions on an annual basis.
For more information from HKIRD, please visit the Government website: http://www.ird.gov.hk/eng/tax/dta_aeoi.htm