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HK signs tax deals with Japan, UK

October 26, 2016

Hong Kong signed agreements today with Japan and the UK to start automatic exchange of financial account information on tax matters in 2018.

 

The Secretary for Financial Services & the Treasury issued a notice to put the two countries on a list of "reportable jurisdictions" under the Inland Revenue Ordinance.

 

The notice will be gazetted on October 28 and tabled at the Legislative Council on November 2. The provisions will come into operation on December 31.

 

The Government said Hong Kong supports international efforts to enhance tax transparency and combat cross-border tax evasion.

 

The two agreements will pave the way for Hong Kong's timely implementation of the automatic exchange, which is important to maintain the city’s reputation as an international financial centre and a responsible member of the international community, it added.

 

Under the automatic exchange standard, a financial institution is required to identify financial accounts held by tax residents of reportable jurisdictions in accordance with the Organisation for Economic Co-operation & Development's due diligence procedures.

 

They are required to collect the reportable information of these accounts and furnish such information to the Inland Revenue Department beginning from the reporting year.

 

The department will exchange the information with the tax authorities of automatic exchange partner jurisdictions annually.



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