Hong Kong: Expansion of CRS "reportable jurisdictions" | KPMG Global
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Hong Kong: Expansion of CRS "reportable jurisdictions" being planned

Hong Kong: Expansion of CRS "reportable jurisdictions"

The Hong Kong government plans to expand the list of reportable jurisdictions for 2017 under the common reporting standard (CRS) from two to 74 to meet international expectations.


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Under the 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. CRS reporting will commence from 2018 with respect to 2017 account information. 

Because Hong Kong is not a sovereign jurisdiction, it cannot be a direct signatory to the OECD multilateral agreement for the automatic exchange of CRS information. Hong Kong therefore originally planned to collect and report CRS information to other countries based on bilateral agreements. 

  • Hong Kong has signed bilateral Competent Authority Agreements (CAA) with Japan and the UK for the exchange of CRS information from 2018 (with respect to 2017 data), and with Korea for the exchange of CRS information from 2019 (with respect to 2018 data). 
  • In view of the targeted approach adopted by Hong Kong, financial institutions are only required to report to the IRD for the first CRS reporting period (due in May 2018) the financial accounts held by tax residents of Japan and the UK. 

More agreements signed or expected

Hong Kong is under pressure to accelerate this process. In particular, the European Union (EU) has announced that it will prepare a blacklist of “noncooperative tax jurisdictions”. One of the listing criteria relates to the implementation of CRS. Specifically, the EU requires arrangements to be in place for the exchange of CRS information with all member states of the EU by the end of 2017. As a result, the Hong Kong government plans to add 72 jurisdictions (in addition to Japan and the UK) to Hong Kong’s list of reportable jurisdictions for CRS purposes. The additions include all EU Member States, all of Hong Kong’s tax treaty partners that have committed to CRS, and other jurisdictions that have expressed an interest to the OECD in exchanging CRS information with Hong Kong. The new jurisdictions include Australia, Canada, China, France, Germany, India, Korea, Malaysia, Russia, and Switzerland.

The Organisation for Economic Co-Operation and Development (OECD) 16 March 2017 announced that Hong Kong signed a CAA with six treaty partners—a further step toward Hong Kong's implementation of  automatic exchange of financial account information (AEOI) on a reciprocal basis with appropriate partners by the end of 2018.


Read a March 2017 report [PDF 216 KB] prepared by the KPMG member firm in Hong Kong

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