CRS Overview
Released by the Organisation for Economic Co-operation and Development (“OECD”) in July 2014, the Common Reporting Standard (“CRS”) is an international standard on how financial institutions collect and report relevant financial account information to their local tax authorities for the purpose of the new global standard on automatic exchange of financial account information in tax matters (“AEOI”), aiming to enhance tax transparency, combat cross-border tax evasion, and protect the integrity of taxation systems.
Advocating AEOI as a more efficient mode of international tax co-operation, more than 100 jurisdictions over the world, including Hong Kong, have committed to the AEOI implementation based on the CRS released by the OECD. As a responsible member of the international community and a leading financial centre, Hong Kong has committed to implementing AEOI and put in place a legislative framework as contained in the Inland Revenue (Amendment) (No.3) Ordinance 2016 (“Amendment Ordinance”), which came into effect on 30th June, 2016, for Hong Kong to implement AEOI.
From 1st January, 2017, financial institutions in Hong Kong, including The Bank of East Asia, Limited (the “Bank”), are required to identify financial accounts held by tax residents of reportable jurisdictions in accordance with due diligence procedures, collect the reportable information of these accounts and furnish such information to the Inland Revenue Department (“IRD”). The IRD will exchange the information with the tax authorities of the AEOI partner jurisdictions on an annual basis.
We need your assistance
As an active participant in Hong Kong’s continued development and success, the Bank aims to help secure this city’s position as a leading financial centre. The Bank therefore fully supports the implementation of AEOI in Hong Kong, and is at the same time wholly dedicated to protecting your interests. We will contact you if you are affected and will confirm what you are requested to do in order to confirm your tax residence.
Please note that if Hong Kong is your sole tax residence, your financial account information will not be reported to the IRD.
For information regarding the tax laws of different jurisdictions in defining tax residence, you can visit the OECD’s AEOI portal. If you have any specific questions regarding your tax residency, please contact a professional tax advisor, as we are unfortunately unable to provide you with tax advice.
