According to ChainCatcher, the Hong Kong government recently announced that it has told the OECD Global Forum on Transparency and Effective Exchange of Information for Tax Purposes that Hong Kong is committed to implementing a Crypto Asset Reporting Framework (reporting framework) to enhance international tax transparency and combat cross-border tax evasion.
In view of the rapid development of the crypto-asset market, the OECD announced a reporting framework in June 2023 to ensure global tax transparency. As an extension of the existing "Common Reporting Standard for Automatic Exchange of Financial Account Information for Tax Matters", the reporting framework stipulates a similar mechanism to allow tax jurisdictions with crypto-asset users or controllers as their tax residents to automatically exchange tax information related to crypto-asset accounts and transactions every year.
To ensure that the reporting framework can be implemented fairly and effectively globally, the Global Forum has invited all tax jurisdictions with relevant crypto-asset industries and identified as directly relevant to the reporting framework (including Hong Kong) to implement the reporting framework.
Hong Kong is committed to implementing the reporting framework with appropriate partners on the basis of reciprocity, provided that the relevant partners meet the standards for protecting data confidentiality and security. Taking into account the latest timetable set by the Global Forum, the Government initially plans to complete the necessary local legislative amendments by 2026 and to conduct the first automatic exchange of information under the reporting framework with relevant tax jurisdictions starting from 2028.