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) World 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 Providers and the Treasury, Hui Ching-yu stated, “The Reporting Framework is the most recent international 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 Alternate of Monetary Account Data in Tax Issues. This has been operational since 2018. Underneath this technique, Hong Kong has been sharing monetary account information 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 information can 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 World Commonplace For Tax Transparency
“Implementing the Reporting Framework is important to sustaining Hong Kong’s repute as a global monetary and enterprise heart and displays Hong Kong’s repute as a accountable tax jurisdiction. Hong Kong has been dedicated to selling worldwide tax cooperation efforts, ” Ching-yu stated.
In accordance with the federal government press launch, “Hong Kong has at all times firmly supported worldwide efforts to enhance tax transparency and fight tax evasion”
Since 2018, the nation has routinely 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 stated, “The federal government will take heed to the views of related stakeholders and the general public when getting ready the mandatory legislative amendments.”
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