Hong Kong Tax News Flash
June 2026, Issue 10
Hong Kong passes bill strengthening its CRS administrative framework
On 17 June 2026, the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 (Bill), as amended by the committee stage amendments (CSAs), passed its third reading in the Legislative Council. The CSAs are technical in nature and are intended to enhance the clarity of the relevant provisions. It is expected to be gazetted as the amendment ordinance on 26 June 2026 (new law).
The new law introduces three key changes to Hong Kong’s administrative framework for automatic exchange of information (AEOI) under the Common Reporting Standard (CRS): mandatory registration for reporting financial institutions (RFIs), updated record-keeping and notification obligations, and strengthened sanctions for non-compliance. These changes will take effect on 1 January 2027.
These amendments were introduced in response to comments and deficiencies identified in the OECD’s 2024 second-round peer review of Hong Kong’s AEOI regime. Passage of the Bill before the OECD’s 30 June 2026 deadline should help Hong Kong secure a favourable rating.
The new law is only the first phase of broader changes to Hong Kong’s AEOI regime. More substantive changes under the amended CRS, including enhanced due diligence and reporting requirements, are being introduced under a separate bill and are expected to take effect on 1 January 2028. RFIs should therefore begin preparing for these operational changes. For details, please refer to our news flash on the amended CRS.
This news flash provides an overview of the key aspects of the new law, together with our observations.
Contact us
South China and Hong Kong Tax Leader, China M&A Tax Leader, PwC Hong Kong
Tel: +[852] 2289 5616
South Private Clients and Family Office Tax Leader, PwC Hong Kong
Tel: +[852] 2289 3816
