Government welcomes passage of Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026

On 17 Jun 2026, the Government welcomed the passage of the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 by the Legislative Council to enhance the administrative framework for the automatic exchange of information in tax matters ("AEOI") in Hong Kong.

Legislative Context and Operational Framework

Since 2018, Hong Kong has conducted automatic exchange of financial account information annually with partner tax jurisdictions in accordance with the OECD Common Reporting Standard ("CRS"), ensuring data confidentiality and security. This enables tax authorities to assess residents and combat cross-border tax evasion.

Regulatory Enhancements Effective January 2027

Following OECD peer review observations, the Government agrees that the administrative framework requires enhancement. Starting from January next year, new requirements will mandate reporting financial institutions to register with the Inland Revenue Department ("IRD"), enhance due diligence record-keeping, and increase penalties to strengthen deterrence.

Strategic Importance and International Obligations

Secretary for Financial Services and the Treasury, Mr Christopher Hui, noted that Hong Kong supports international tax transparency and must address OECD views to maintain a favourable peer review rating. Strengthening the AEOI framework boosts confidence in the tax system and facilitates the expansion of the Comprehensive Avoidance of Double Taxation Agreement network, providing tax certainty for businesses expanding overseas.

Industry Support and Issuance

To assist the industry, the IRD will issue relevant guidance, maintain communication, and provide technical support for enquiries. Ends/Wednesday, June 17, 2026 Issued at HKT 16:55