Hong Kong updates financial account information exchange list

It removed nine jurisdictions and welcomed 11.

Hong Kong is amending its list of jurisdictions for the automatic exchange of financial account information in tax matters (AEOI) under the Inland Revenue Ordinance following a recommendation made by the Organisation for Economic Co-operation and Development (OECD).

Authorities will remove Bahrain, Belize, Marshall Islands, Montserrat, Nauru, Niue, Saint Vincent & the Grenadines, Seychelles, and Trinidad & Tobago from the list since they have not activated exchange relationships for AEOI with Hong Kong.

Azerbaijan, Ecuador, Jamaica, Kazakhstan, Kenya, Maldives, Nigeria, Oman, Pakistan, Peru, and Thailand will join the list since they have implemented the exchange relationship for AEOI. 

AEOI has been in place since September 2018 to enhance tax transparency and combat cross-border tax evasion.

Following its review of Hong Kong’s legal framework, the OECD said its list should only include those who have activated their exchange relationships with Hong Kong.

ALSO READ: Proposed tax concessions get approval

Updating the list will ensure Hong Kong's compliance with international tax information exchange standards, the government announced.

The Inland Revenue Ordinance (Amendment of Schedule 17E) Notice 2024 will be gazetted on 3 May and tabled at the Legislative Council for negative vetting on 8 May. Subject to the completion of the legislative procedures, the amendment notice will come into operation on 1 January next year.