The Hong Kong authorities has dedicated to implementing a compulsory crypto asset reporting framework by 2026.
On 13 December 2024, Hong Kong authorities made this announcement on the Group for Financial Co-operation and Growth (OECD) International Discussion board on Transparency and Efficient Alternate of Data in Tax Issues.
Importantly, the nation is taking the proactive measures concerning crypto regulation to counter cross-border tax evasion.
Commenting on the event, the Secretary for Monetary Companies and the Treasury, Hui Ching-yu mentioned, “The Reporting Framework is the latest global standard for tax transparency.”
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Proposed Framework Will Require Residents To Report Crypto Transactions
Hong Kong Pledges Crypto Asset Reporting Framework by 2026 to Fight Tax Evasion pic.twitter.com/4hPXGj3D85
— Crypto Period (@_cryptoera_) December 17, 2024
The proposed crypto asset reporting framework would require tax-paying residents within the nation to yearly report their crypto accounts and transactions.
This builds upon the area’s current Computerized Alternate of Monetary Account Data in Tax Issues. This has been operational since 2018. Beneath this method, Hong Kong has been sharing monetary account information with companion jurisdictions to facilitate tax assessments and detect evasion.
The brand new framework will lengthen these efforts to incorporate cryptocurrency transactions.
As soon as carried out, the collected information will likely be shared with tax authorities globally to make sure honest and efficient enforcement of tax legal guidelines.
Beforehand, the OECD introduced a reporting framework in June 2023. This was additionally to make sure that international tax transparency is maintained.
Hong Kong Considers International Customary For Tax Transparency
“Implementing the Reporting Framework is vital to maintaining Hong Kong’s reputation as an international financial and business center and reflects Hong Kong’s reputation as a responsible tax jurisdiction. Hong Kong has been committed to promoting international tax cooperation efforts, ” Ching-yu mentioned.
In line with the federal government press launch, “Hong Kong has always firmly supported international efforts to improve tax transparency and combat tax evasion”
Since 2018, the nation has mechanically exchanged monetary account data with companion tax jurisdictions yearly. The related tax authorities could use the knowledge for tax assessments and to detect and fight tax evasion.
Ching-yu mentioned, “The government will listen to the views of relevant stakeholders and the public when preparing the necessary legislative amendments.”
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