HK COMMITS TO CRYPTO-ASSET REPORTING

The Government informed the Global Forum on Transparency & Exchange of Information for Tax Purposes of the Organisation for Economic Co-operation and Development (OECD) today of Hong Kong's commitment to implementing the Crypto-Asset Reporting Framework (CARF) for enhancing international tax transparency and combating cross-border tax evasion.

Secretary for Financial Services & the Treasury Christopher Hui said CARF is the latest global standard on tax transparency and its implementation is crucial for maintaining Hong Kong's reputation as an international financial and business centre. It also reflects Hong Kong's ongoing efforts in promoting international tax co-operation as a responsible tax jurisdiction.

Hong Kong is committed to implementing CARF on a reciprocal basis with appropriate partners that meet the required standards for protecting data confidentiality and security.

Based on the latest timetable set by the global forum, the Government aims to commence the first automatic exchanges with relevant jurisdictions under CARF from 2028, based on the initial plan that the necessary local legislative amendments can be put in place by 2026.

Mr Hui added that the Government will engage relevant stakeholders and members of the public when preparing the necessary legislative amendments.

The OECD published CARF in 2023 with a view to ensuring that global tax transparency would be maintained in light of the rapid growth of the crypto-asset market.

As an extension of the existing Common Reporting Standard for Automatic Exchange of Financial Account Information in Tax Matters, CARF provides for a similar mechanism for annual automatic exchange of tax-relevant crypto-asset account and transaction information among jurisdictions where crypto-asset users or controlling persons are tax residents.

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