Hong Kong Inland Revenue 2016 Amendment Ordinance came into effect last month on 30th June .
Hong Kong is implementing The Automatic Exchange of Information(AEOI) by making a legal framework, to enhance tax transparency and combat international tax evasion. The Amendment Ordinance enables Hong Kong to deliver support for the new international standard on Automatic Exchange of Information(AEOI) as promulgated by The Organization for Economic Cooperation and Development(OECD).
Financial institution(FI) has an obligation to indentify the tax residents financial information in accordance with Due Diligence procedures by OECD. Financial institutions are requested to collect these tax residents financial information, and report these informations to the Hong Kong Tax Inland Revenue Department. Hong Kong Tax Department will exchange the information with member who have signed agreements on avoidance of double taxation or on tax information exchange.
Hong Kong Government announced they will begin to conduct Due Diligence procedures and collect tax residents information in 2017, and provide this information to Hong Kong Tax Department in 2018.