The Hong Kong government has announced the implementation of a crypto asset declaration framework aimed at increasing international tax transparency and combating cross-border tax evasion. This initiative responds to the new global tax transparency standards released by the OECD in June 2023.
The declaration framework is an extension of the existing automatic exchange of tax information standards, requiring jurisdictions to automatically exchange tax information on crypto asset accounts and transactions annually. This means that users holding crypto assets will face stricter tax regulation.
Hong Kong plans to complete the relevant legislation by 2026 and begin the first automatic data exchange in 2028. This commitment demonstrates Hong Kong's proactive stance in the global tax transparency process.🔍🌐📊