Summary of Automatic Exchange of Financial Account Information (“AEOI”) and Common Reporting Standard (“CRS”)
- To enhance tax transparency and combat cross-border tax evasion, over 100 jurisdictions have committed to implement Automatic Exchange of Financial Account Information (“AEOI”) based on the “Common Reporting Standard” (“CRS”) released by the Organisation of Economic Co-operation and Development (“OECD”).
- Bank of China (Hong Kong) Limited (“the Bank”) is required by the Inland Revenue (Amendment) (No. 3) Ordinance 2016 and other subsequent Inland Revenue (Amendment) Ordinances (“the Amendment Ordinance”) to identify our customers’ tax residence. If you are a tax resident in a Reportable Jurisdiction, the Bank is required to report your account information to the Hong Kong Inland Revenue Department (“HKIRD”) on an annual basis. The HKIRD will then exchange the account information with the tax administration of the reportable jurisdictions.
Impact on Customers
- If you are a tax resident in a reportable jurisdiction, the Bank is required to furnish your account information to the HKIRD on an annual basis starting from 2018. The HKIRD will in turn exchange the account information with tax administration of the reportable jurisdictions.
- If Hong Kong is your only tax residency, the Bank will not report your account information to the HKIRD.
- How does the Bank identify your “tax residency”?
- For accounts opened before 1 January 2017, the Bank is required to identify your tax residency based on existing account information. The Bank may ask you to provide a self-certification （A formal declaration you make in connection with your tax residency）and/or additional information to confirm your tax residency.
- For new accounts opened on or after 1 January 2017, the Bank is required to obtain a self-certification to establish your tax residency.
How to obtain more information and assistance
- You may visit the HKIRD AEOI website for further information on AEOI.
- If you have any questions regarding your tax residency, please seek advice from a professional tax advisor. You may also refer to the OECD website for further information on tax residency rules issued by AEOI partner jurisdictions.
Frequently asked questions/Glossary
- Are all banks required to comply with the requirements under CRS and AEOI?
- All reporting financial institutions (include banks) in participating countries / regions of AEOI (include Hong Kong) are required to comply with CRS.
- All reporting financial institutions (include banks) in participating countries / regions of AEOI (include Hong Kong) are required to comply with CRS.
- I am a resident in Hong Kong, why do I need to provide information for CRS purposes?
- According to the Amendment Ordinance and other subsequent Inland Revenue (Amendment) Ordinances, the Bank is legally responsible to identify our customers’ tax residency status, including Hong Kong tax residents. However, if you are not a tax resident in any other jurisdictions outside Hong Kong, the Bank will not report your account information to the HKIRD.
- According to the Amendment Ordinance and other subsequent Inland Revenue (Amendment) Ordinances, the Bank is legally responsible to identify our customers’ tax residency status, including Hong Kong tax residents. However, if you are not a tax resident in any other jurisdictions outside Hong Kong, the Bank will not report your account information to the HKIRD.
- What information will the Bank report to the HKIRD?
- Reportable account information, includes account holder’s name, address, jurisdiction of residence, taxpayer identification number (“TIN”), date of birth.
- With regards to financial account information, reportable information includes account number, year-end balance, total gross amount of interests, dividends, and proceeds from sale or redemption of financial assets (if applicable) paid or credited to the account.
- Which countries / regions have committed to CRS? Which countries / regions will exchange information with Hong Kong?
- A complete list of participating jurisdictions, and the dates on which they begin to exchange information are available on the OECD CRS website. (in English)
- A list of Reportable Jurisdictions can be found on the HKIRD website.
- Self-Certification Form
- Self-Certification Form is a formal declaration you make in connection with your tax residency. The Bank may rely on the self-certification form from customers to confirm their tax residency. There are three versions of self-certification forms and they are for individuals, entities, and controlling person(s).
- Self-Certification Form is a formal declaration you make in connection with your tax residency. The Bank may rely on the self-certification form from customers to confirm their tax residency. There are three versions of self-certification forms and they are for individuals, entities, and controlling person(s).
- Tax Residency / Jurisdiction of residence
- Tax Residency / Jurisdiction of residence mean territory of which an individual or entity is liable to tax by reason of residence in the jurisdiction. The tax laws of different jurisdictions for defining tax residence may vary. Please seek advice from a professional tax advisor or refer to the OECD website for more information on tax residency.
- Tax Residency / Jurisdiction of residence mean territory of which an individual or entity is liable to tax by reason of residence in the jurisdiction. The tax laws of different jurisdictions for defining tax residence may vary. Please seek advice from a professional tax advisor or refer to the OECD website for more information on tax residency.
- Taxpayer Identification Number (“TIN”)
- The term “TIN” means Taxpayer Identification Number or a functional equivalent in the absence of a TIN. A TIN is a unique combination of letters or numbers assigned by a jurisdiction to an individual or an Entity and used to identify the individual or Entity for the purposes of administering the tax laws of such jurisdiction.
- Some jurisdictions do not issue a TIN. However, these jurisdictions often utilise some other high integrity number with an equivalent level of identification (a “functional equivalent”). Examples of that type of number include a social security/insurance number, citizen/personal identification/service code/number, resident registration number, a Business/company registration code/number.
- Further details of acceptable TINs can be found at the OECD Automatic Exchange Portal.
