BlockBeats news, on December 17, the Hong Kong government recently announced that it has pledged to the OECD Global Forum on Tax Transparency and Exchange of Information that Hong Kong will implement a reporting framework for crypto assets (the reporting framework) to enhance international tax transparency and combat cross-border tax evasion activities.
In view of the rapid development of the crypto asset market, the OECD released the reporting framework in June 2023 to ensure global tax transparency is maintained. As an extension of the current 'Common Reporting Standard for Automatic Exchange of Financial Account Information on Tax Matters,' the reporting framework specifies a similar mechanism that allows users or controllers of crypto assets to automatically exchange tax information related to crypto asset accounts and transactions with their tax jurisdictions annually.
To ensure the fair and effective global implementation of the reporting framework, the Global Forum has invited all relevant crypto asset industry participants and tax jurisdictions identified as directly related to the reporting framework (including Hong Kong) to implement the reporting framework.
Hong Kong is committed to implementing a reporting framework with suitable partners on a reciprocal basis, and the relevant partners must meet standards for data confidentiality and security. Considering the latest timetable established by the global forum, the government initially plans to complete the necessary local legislative amendments by 2026 or earlier, and to begin the first automatic data exchange under the reporting framework with relevant tax jurisdictions starting in 2028.