Hong Kong’s Legislative Council Passes Tax Amendment Bill to Upgrade AEOI Compliance Framework

The Legislative Council of Hong Kong passed the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 on 17 June 2026, upgrading Hong Kong’s administrative framework governing Automatic Exchange of Information in tax matters (AEOI).

The revisions are rolled out to address recommendations made by the Organisation for Economic Co-operation and Development (OECD) after its peer review on Hong Kong’s execution of the Common Reporting Standard. The major adjustments cover the following aspects:

1. Mandating reporting financial institutions to register with the Inland Revenue Department (IRD) for better identification and supervision; 2. Tightening rules on the retention of due diligence documents; 3. Revamping penalty provisions to strengthen deterrent effects and law enforcement efficiency; 4. Launching an administrative penalty system to speed up case procedures. All updated compliance rules shall come into force on 1 January 2027. The IRD will release official guidelines and offer technical assistance to support financial institutions in meeting the updated legal requirements.