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 Improvement (OECD) World Discussion board on Transparency and Efficient Trade of Info 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 Providers and the Treasury, Hui Ching-yu mentioned, “The Reporting Framework is the newest world commonplace 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 Trade of Monetary Account Info in Tax Issues. This has been operational since 2018. Below this method, Hong Kong has been sharing monetary account knowledge with associate jurisdictions to facilitate tax assessments and detect evasion.
The brand new framework will prolong these efforts to incorporate cryptocurrency transactions.
As soon as carried out, the collected knowledge will probably be shared with tax authorities globally to make sure truthful and efficient enforcement of tax legal guidelines.
Beforehand, the OECD introduced a reporting framework in June 2023. This was additionally to make sure that world tax transparency is maintained.
Hong Kong Considers World Customary For Tax Transparency
“Implementing the Reporting Framework is significant to sustaining Hong Kong’s fame as a global monetary and enterprise middle and displays Hong Kong’s fame as a accountable tax jurisdiction. Hong Kong has been dedicated to selling worldwide tax cooperation efforts, ” Ching-yu mentioned.
Based on the federal government press launch, “Hong Kong has all the time firmly supported worldwide efforts to enhance tax transparency and fight tax evasion”
Since 2018, the nation has mechanically exchanged monetary account info with associate 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 federal government will take heed to the views of related stakeholders and the general public when making ready the mandatory legislative amendments.”
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