Hong Kong Tax News Flash
December 2025, Issue 12
Hong Kong releases consultation paper on CARF and CRS 2.0
The Organisation for Economic Co-operation and Development (OECD), through the promulgation of the amended Common Reporting Standard, commonly referred to as CRS 2.0, and the Crypto-Asset Reporting Framework (CARF), has established global standards aimed at enhancing tax transparency and combating evasion in respect of crypto-assets through automatic exchange of information (AEOI). CRS 2.0 expands reporting data points to address emerging risks, while CARF focuses on crypto-asset transactions, closing transparency gaps in the digital asset space.
Hong Kong has long aligned its CRS framework with OECD standards, implementing due diligence and reporting requirements. The Financial Services and the Treasury Bureau and Inland Revenue Department have recently launched a public consultation on the upcoming implementation of CARF and CRS 2.0 regulations in Hong Kong. Stakeholders were invited to provide feedback during the consultation period, which ran until 6 February 2026.
As these frameworks have been finalised through international consensus, Hong Kong has no discretion to diverge from them. The consultation paper therefore concentrates on areas where choices remain, and the key points for consideration include:
- The introduction of mandatory registration requirements for reporting financial institutions and reporting crypto-asset service providers
- Enhanced penalty regime and record keeping requirements which are broadly aligned across both regimes
In addition, the consultation paper confirms the proposed timeframe for the rollout of CARF from 1 January 2027 and CRS 2.0 enhancements from 1 January 2028, as well as the newly proposed registration deadlines.
Hong Kong’s thoughtful CARF and CRS 2.0 consultation ahead of rollout signals a strong commitment to enhancing tax transparency and growing its financial ecosystem responsibly. Feedback from the OECD peer review has been taken into account as Hong Kong looks to enhance its local compliance framework. We welcome this proactive engagement and look forward to deeper collaboration across the industry.
This news flash provides a summary of these two new international standards, outlines the consultation questions seeking stakeholders’ views and highlights their implications for affected businesses.
Contact us
South China and Hong Kong Tax Leader, China M&A Tax Leader, PwC Hong Kong
Tel: +[852] 2289 5616
