21 September 2016


What is AEOI

A new system that involves transmission of financial account information from HK to an AEOI partner (i.e. an overseas tax jurisdiction that has entered into an AEOI Agreement with Hong Kong) to identify if a tax resident whose tax affairs are not compliant.

What is the purpose of AEOI

To cope with international standard for increasing tax transparency between jurisdictions. Over 100 tax authorities across the world have committed to AEOI.

Time frame for implementation

The Hong Kong Inland Revenue Department ("IRD") targets to commence the first information exchanges in 2018 and hence the IRD will announce by the end of 2016, the list of AEOI partners.

Who will be the AEOI partners

In the first place, the IRD intends to enter AEOI agreements with those jurisdictions which have signed a comprehensive avoidance of double taxable agreement (“CDTA”) or tax information exchange agreement (“TIEA”). There are now 35 CDTA partners and 7 TIEA partners with Hong Kong by the end of June 2016.  


Austria Belgium Brunei Canada
Czech France Guernsey Hungry
Indonesia Ireland Italy Japan
Jersey Korea Kuwait Latvia
Liechtenstein Luxembourg Mainland China Malaysia
Malta Mexico Netherlands New Zealand
Portugal Qatar Romania Russia
South Africa Spain Switzerland Thailand
United Arab Emirates United Kingdom Vietnam  



Denmark        Faroes      Greenland Iceland  
Norway Sweden USA  


​​Why is it relevant for you?

If you have assets or income outside of the jurisdiction that you are a tax resident, then your financial information may be shared with your jurisdiction of residence. The financial institution will collect and furnish to the IRD information of the identified account holders (individual or entity including trust and foundation) and the financial account information on an annual basis.  IRD will then transmit the information to the tax administration of the relevant jurisdiction of which the account holder is tax resident.

Hong Kong taxpayers who are not tax residents of any territory outside Hong Kong will not be affected by the implementation of AEOI.

​​Information Exchange

​​Which types of organisations are reporting their financial information

A broad range of financial institutions including custodial institutions, depository institutions,investment entities, and specified insurance companies, commonly they are banks, insurers, wealth and asset managers.

​​How the information is collected

The reporting financial institutions are required to apply due diligence procedures to collect all required information and documentation from account holders. To identify reportable person, reporting financial institutions may ask account holders to complete self-certification forms for verification of their tax residency status. The self-certifications will be kept by the reporting financial institutions for a period of 6 years.

Self-certification would be required from account holders for all new accounts (accounts opened on or after 1 January 2017). For accounts opened before 1 January 2017, if a reporting financial institution has doubts about the tax residence of an account holder, it can seek a self-certification from the account holders to verify its tax residence. More information regarding the tax law of different jurisdictions for defining tax residence can be found at   An account holder is liable on conviction to a fine of up to (HK$10,000) if an account holder who knowingly or recklessly provides a statement that is misleading, false or incorrect in a material particular in making a self-certification to a reporting financial institutions.  It is anticipated practice note on AEOI will be issued by the IRD in which further guidance on the implementation details will be provided.

​​How we can assist

ALCPA can assist you on reviewing your current operations and perform planning and restructuring for your company.  ALCPA is qualified intermediary with various banks and financial institutions ensuring your Company is compliant with relevant regulations around the world.

Should you require any assistance, please do not hesitate to contact us.


    Derrick Liu
    (852) 2574 8289 (Ext. 121)

    Zita Ng
    (852) 2574 8289 (Ext. 117)


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