(April 25, 2015)
On April 24, 2015 the Authorities of the Government of the Hong Kong Special Administrative Region launched a Public Consultation regarding the Automatic Exchange of Financial Account Information in Tax Matters (AEOI). According to a press release issued by the Hong Kong Government the purpose of the consultation exercise to gauge views on proposals to apply, with adaptations for Hong Kong, the prevailing international standards on the AEOI. The press release furthermore states that the Hong Kong Government’s current target is to introduce an amendment bill into the Legislative Council in early 2016.
According to the press release the Hong Kong Government plans to conduct AEOI on a bilateral basis with jurisdictions with which Hong Kong has signed a comprehensive avoidance of double taxation agreement (CDTA) or a Tax Information Exchange Agreement (TIEA). It is furthermore stated that in identifying AEOI partners from amongst its CDTA or TIEA partners, the Hong Kong Government will take into account their capability in meeting the OECD standard and in protecting data privacy and confidentiality of the information exchanged in their domestic law.
The subjects discussed in the Public Consultation a.o. include:
· Key components of AEOI Standard
o What is AEOI?
o Components of the AEOI Standard
· Proposed AEOI Model for Hong Kong – Legislative Framework
o Policy Intent
o Hong Kong’s existing policy on EOI
o Legal basis for AEOI
o Key provisions of CAA and CRS to be incorporated in IRO
o Scope of FIs and reportable accounts
o Non-reporting FIs and excluded accounts
o Scope of information to be furnished by FIs to IRD and exchanged with AEOI partners
o Requirement for FIs to identify and keep information of accounts concerning reportable jurisdictions
o Enforcement provisions - powers and sanctions
o Safeguards on Taxpayers’ Rights and Confidentiality of Information Exchanged
· Operational Framework for AEOI in Hong Kong
o Reporting and Due Diligence Requirements
o Ascertaining Tax Residence
o AEOI Portal
o Filing AEOI Returns
o Proposed Implementation Timetable
· Views Sought
Comments/views should be sent on or before June 30, 2015 by post, fax or email to the Revenue Division - Financial Services and the Treasury Bureau (Treasury Branch).
Click here to be forwarded to the Consultation Paper on Automatic Exchange of Financial Account Information in Tax Matters in Hong Kong as published on the website of the Hong Kong Financial Services and the Treasury Bureau.
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