As announced on October 26, 2016, Hong Kong has signed agreements with Japan and the United Kingdom with a view to commencing automatic exchange of financial account information in tax matters (AEOI) with these two tax jurisdictions in 2018. The Inland Revenue Department (IRD) has recently signed bilateral competent authority agreements (CAAs), based on the model CAA promulgated by Organisation for Economic Co-operation and Development (OECD), with Japan and the United Kingdom. Under the AEOI standard, a financial institution (FI) is required to identify financial accounts held by tax residents of reportable jurisdictions in accordance with the OECD’s due diligence procedures.
