BlockBeats news, December 17, the Hong Kong government recently announced that it has expressed its commitment to the OECD Global Forum on Tax Transparency and Exchange of Information to 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 announced the reporting framework in June 2023 to ensure the maintenance of global tax transparency. As an extension of the current 'Common Reporting Standard for Automatic Exchange of Financial Account Information', the reporting framework stipulates a similar mechanism for tax jurisdictions where users or controllers of crypto assets are tax residents to automatically exchange tax-related information on crypto asset accounts and transactions annually.
To ensure the fair and effective implementation of the reporting framework globally, 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 under the principle of reciprocity, and the relevant partners must meet the standards for safeguarding the confidentiality and security of information. In light of the latest timetable set by the Global Forum, the government initially plans to complete the necessary local legislative amendments by 2026 or earlier, and to commence the first automatic exchange of information under the reporting framework with relevant tax jurisdictions starting in 2028.