Automatic Exchange of Financial Account Information in Tax Matters implemented between the Mainland and Hong Kong

An arrangement on automatic exchange of financial account information in tax matters between the Mainland and Hong Kong was effective from 6 September 2018.

The automatic exchange of financial account information in tax matters is a global tax co-operation initiative which mandates financial institutions to identify financial accounts held by tax residents of jurisdictions and collects relevant information for reporting to the tax authority.

As of the end of August 2018, 149 jurisdictions (including Hong Kong) have undertaken to implement the automatic exchange of financial account information.

Hong Kong has activated automatic exchange relationships with 49 jurisdictions on the basis of bilateral competent authority agreements or a multilateral competent authority agreement under the Convention on Mutual Administrative Assistance in Tax Matters. Hong Kong will conduct automatic exchange of financial account information with the Mainland and 49 jurisdictions for the first time in late September 2018.

Hong Kong will deliver its obligations to implement the automatic exchange of financial account information in tax matters in accordance with the Common Reporting Standard promulgated by the Organisation for Economic Co-operation and Development. Hong Kong Inland Revenue Department will exchange the relevant information with its counterparts in the jurisdictions concerned on an annual basis.