What is Common Reporting Standard?
The Common Reporting Standard (“CRS”) is a standard for the Automatic Exchange of Financial Account Information (“AEOI”) promulgated by the Organisation for Economic Co-operation and Development.
To provide a legal framework for the implementation of AEOI, the Government of the Hong Kong Special Administrative Region has enacted the Inland Revenue (Amendment) (No. 3) Ordinance 2016, which came into effect on 30 June 2016. Effective from 1 January 2017, all reporting financial institutions in Hong Kong are required to identify the tax residency of their account holders, and to furnish a return periodically reporting the required information in relation to the reportable accounts to the Inland Revenue Department (“IRD”) for its transfer to the tax authority of the relevant jurisdiction.
For more details, you are advised to visit the IRD website or the OECD website or contact your tax advisor.
Frequently asked questions