Hong Kong has signed agreements with Japan and the UK to start automatic exchange of financial account information in tax matters till the end of 2018. The exchange of the information between states is to be performed on an annual basis.
The HK Government has already declared support of the international efforts to enhance tax transparency and combat cross-border tax evasion. As follows, Hong Kong is signing bilateral agreements with appropriate jurisdictions. By appropriate jurisdiction means the country with legislation stipulating the automatic exchange which is capable to enforce it, as well as to protect personal data subject to exchange.
Under the automatic exchange standard, financial institutions are required to identify financial accounts held by tax residents of reportable jurisdictions. They are required to collect the reportable information of these accounts and furnish such information to the Inland Revenue Department. In case when the account holder is not the resident of reportable jurisdictions, the information is not subject to collection and further exchange.
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