The Hong Kong SAR government announced on December 13 that it had informed the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes of its commitment to implement a reporting framework for crypto assets (the reporting framework) to enhance international tax transparency and combat cross-border tax evasion.
In light of the rapid development of the crypto asset market, the OECD published the reporting framework in June 2023 to ensure global tax transparency is maintained. As an extension of the existing 'Common Reporting Standard for Automatic Exchange of Financial Account Information on Tax Matters', the reporting framework establishes a similar mechanism for jurisdictions to automatically exchange tax information related to crypto asset accounts and transactions on behalf of their tax residents who are users or controllers of crypto assets each year.
To ensure the fair and effective global implementation of the reporting framework, the Global Forum has invited all relevant crypto asset industries 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 the basis of reciprocity, and the relevant partners must meet standards for safeguarding data confidentiality and security. Considering the latest timeline established by the global forum, the government plans to complete the necessary local legislative amendments by 2026 or earlier, and to begin the first automatic exchange of information under the reporting framework with relevant tax jurisdictions starting in 2028.
Xu Zhengyu added: The government will listen to the opinions of relevant stakeholders and the public when preparing the necessary legislative amendments.
(Source: Hong Kong Government News Network)
