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
© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.