July 2026 / Hong Kong

Hong Kong has strengthened its framework for the Automatic Exchange of Information (AEOI) through legislative amendments approved by the Legislative Council in June 2026. The updated provisions reinforce the jurisdiction’s alignment with the OECD’s Common Reporting Standard (CRS) and reflect recommendations arising from the OECD peer review process.

Since implementing the CRS in 2018, Hong Kong has participated in the international exchange of financial account information with partner jurisdictions, supporting global initiatives aimed at enhancing tax transparency and combating cross-border tax evasion.

The legislative amendments focus on reinforcing the administrative aspects of the existing AEOI regime rather than changing the underlying reporting framework. Among the key measures introduced are mandatory registration requirements for reporting financial institutions, enhanced record-keeping obligations and a strengthened penalty regime for cases of non-compliance. Together, these measures are intended to improve the efficiency, consistency and integrity of the reporting system.

The updated framework will enter into force on 1 January 2027. Prior to its implementation, the Inland Revenue Department is expected to publish additional guidance and technical information to support financial institutions in meeting the new administrative requirements.

Practical implications

Financial institutions operating in or through Hong Kong should use the implementation period to review their existing AEOI governance, internal reporting procedures and documentation policies. Although the amendments do not introduce new CRS reporting obligations, they increase the administrative expectations placed on reporting entities and reinforce the importance of maintaining effective compliance controls. The reform highlights Hong Kong’s continued commitment to international tax transparency and demonstrates its intention to remain fully aligned with evolving OECD standards governing the automatic exchange of tax information.

Hong Kong has taken another step in strengthening its position as an international financial centre by introducing new rules that allow stamp duty on eligible dual-counter stock transactions to be settled in Renminbi (RMB).

The legislative amendment forms part of the government's broader strategy to support the development of RMB-denominated financial markets and facilitate the wider use of the Chinese currency in cross-border investment activities.

Under the new framework, investors trading securities listed under the dual-counter model will be able to calculate and pay the corresponding stamp duty directly in RMB. This approach is expected to simplify settlement procedures for market participants operating through the RMB counter while improving operational efficiency.

The reform also supports the continued expansion of Hong Kong's offshore Renminbi ecosystem. By allowing tax obligations to be settled in the same currency used for the underlying transaction, the measure aims to enhance liquidity within RMB trading activities and encourage greater participation in RMB-denominated securities.

Before the new regime becomes operational, market infrastructure providers and relevant authorities will complete the necessary technical and administrative preparations to ensure a smooth implementation.

For businesses, financial institutions and international investors, the development represents another example of Hong Kong's ongoing efforts to modernise its capital markets while reinforcing its role as a gateway between Mainland China and global financial markets.