In order to fight cross-border tax evasion and improve world tax transparency, the Hong Kong government has declared intentions to apply a thorough crypto asset reporting system Officials presented their aim to complete the legal changes by 2026 at the OECD Global Forum on Transparency and Effective Exchange of Information in Tax Matters on December 13.
A government press release claims that the proposed architecture expands on Hong Kong’s current Automatic Exchange of Financial Account Information (AEOI) system. Residents will have to yearly declare their crypto asset accounts and transactions, therefore guaranteeing more openness for tax assessments.
With full implementation and data exchange projected to start by 2028, the government seeks to finish the required regulatory framework by 2026. Related tax jurisdictions Data gathered under the new system will be shared with foreign tax authorities in order to support equitable and efficient worldwide tax obligation execution.
Hong Kong has automatically sent bank account information to partner nations since 2018 in order to find and stop tax evasion. The start of crypto asset reporting fits this continuous dedication to global tax cooperation.
Emphasising the importance of the project, Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, said: “Maintaining Hong Kong’s status as an international financial and economic hub depends on implementing the reporting system. It also shows our role as a conscientious tax authority dedicated to world openness.
Hui also mentioned that authorities will aggressively include the public and stakeholders to guarantee the legal changes satisfy industry issues and satisfy global norms.
Hong Kong confirms its leadership as a top financial centre in the developing digital economy by giving openness and cooperation top priority.
