Hong Kong: Proposes automatic exchange of tax information related to crypto-asset transactions with relevant partner tax jurisdictions from 2028

The Government of the Hong Kong Special Administrative Region has launched a public consultation on the implementation of the crypto asset reporting framework and the amendments related to the Common Reporting Standard. The Secretary for Financial Services and the Treasury, Mr. Hui Cheng-yu, said that to demonstrate Hong Kong's commitment to promoting international tax cooperation and combating cross-border tax evasion, and to fulfill its international obligations, we will amend the Inland Revenue Ordinance (Cap. 112) (the Ordinance) to implement the reporting framework and the newly revised Common Reporting Standard. This move is also crucial to maintaining Hong Kong's reputation as an international financial and business center. The government plans to complete the necessary local legislative amendments within the next year, with the goal of automatically exchanging tax information related to crypto asset transactions with relevant partner jurisdictions from 2028, and implementing the newly revised Common Reporting Standard from 2029. Hong Kong will automatically exchange tax information with suitable partners under the principle of reciprocity, where the partners must meet standards related to safeguarding the confidentiality and security of the data. (Jin Ten)