The legal framework of automatic exchange of financial account information in tax matters will be refined from January 1, 2020.

The Government said the move aims to better align the relevant provisions with the requirements promulgated by the Organisation for Economic Co-operation and Development.

The Inland Revenue (Amendment) (No. 2) Ordinance 2019, gazetted today, requires Mandatory Provident Fund Schemes, Occupational Retirement Schemes registered under the Occupational Retirement Schemes Ordinance, pooling agreements, approved pooled investment funds and credit unions to comply with the due diligence and reporting obligations relating to the automatic exchange of financial account information starting from 2020.

If members of the institutions concerned are tax residents of the reportable jurisdictions, such institutions will need to report in 2021 for the first time to the Inland Revenue Department those members’ financial account information for passing on to relevant tax authorities.

The Government said the amendment ordinance will also raise the number of reportable jurisdictions under the Inland Revenue Ordinance to 126 from the current 75.

More details on the automatic exchange of financial account information are available here.