Arrangement on Automatic Exchange of Financial Account Information in Tax Matters Between Mainland and HKSAR in Force
An arrangement between the Mainland and Hong Kong for conducting automatic exchange of financial account information in tax matters (AEOI) came into effect on September 6, 2018.
Hong Kong has earlier on activated exchange relationships under AEOI with 49 other jurisdictions on the basis of similar bilateral competent authority agreements or a multilateral competent authority agreement under the Convention on Mutual Administrative Assistance in Tax Matters.
AEOI is a global tax co-operation initiative which mandates financial institutions to identify financial accounts held by tax residents of reportable jurisdictions and collect relevant information for reporting to the tax authority. The Inland Revenue Department of Hong Kong will exchange the relevant information with their counterparts in the reportable jurisdictions concerned on an annual basis. As of end August 2018, 149 jurisdictions, including Hong Kong, have undertaken to implement AEOI.
For more information or any assistance please contact Kenneth Au, Tax Managing Director of Zetland Tax Advisors at kennetha@zetland.biz or + 852 3552 9093
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