Hong Kong: Hong Kong commits to the Common Reporting Standard

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Hong Kong: Hong Kong commits to the Common Reporting Standard

lau.jpg

bowdern.jpg

Ayesha Lau


Darren Bowdern

The Standard for Automatic Exchange of Financial Account Information in Tax (the Common Reporting Standard (CRS)), which is intended to facilitate the automatic exchange of financial information, was approved by the G20 finance ministers and Central Bank governors at their meeting in Cairns, Australia on September 20-21 2014. Shortly before that, in an announcement on September 15 2015, the Secretary for Financial Services and the Treasury, Professor KC Chan, committed Hong Kong to implementing the CRS.

Existing legislation in Hong Kong only provides for exchange of information on a request basis and the adoption and implementation of the CRS will require amending legislation. With this in mind, the secretary further announced that the HKSAR Government would soon engage stakeholders, address policy and legal issues, and ultimately seek the Legislative Council's approval for the legislation required to implement the new global standard for the automatic exchange of information.

This approach is similar to that adopted by the government when it introduced legislation in 2013 enabling Hong Kong to enter into standalone tax information exchange agreements (TIEAs). In this instance, the consultation process lasted around 12 months and included consultations with business and industry bodies, as well as legal, financial and accountancy representative groups.

The government has indicated that it expects legislation to allow for the automatic exchange of information under the CRS to be enacted during 2016 with the first exchanges of information expected in 2018.

In a related development, Macau has announced that, like Hong Kong, it will shortly commence legislative measures to amend its domestic law so it is able to fully comply with the CRS.

Ayesha Lau (ayesha.lau@kpmg.com) and Darren Bowdern (darren.bowdern@kpmg.com)

KPMG

Tel: +852 2826 8028 & +852 2826 7166

Website: www.kpmg.com/sg

more across site & shared bottom lb ros

More from across our site

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Gift this article