EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Hong Kong AEOI Updates – Crypto-Asset Reporting Framework (CARF) and Common Reporting Standard (CRS) 2.0 Bill
The Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 (“the CARF/CRS2.0 Bill” or “the Bill”), which aims to implement the Crypto-Asset Reporting Framework (CARF) and the latest amendments to the Common Reporting Standard (CRS2.0) developed by the Organisation for Economic Co-operation and Development (OECD) in Hong Kong, was gazetted on 22 May 2026 and will be introduced into the Legislative Council for a first reading on 3 June 2026.
The Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 (“the Enhanced Administration Bill”), which aims to enhance the relevant administrative framework, including requiring reporting financial institutions (RFIs) to register with the Inland Revenue Department (IRD) for strengthening identification, enhancing due diligence record-keeping requirements and raising penalties to increase deterrence, was gazetted earlier on 27 March 2026, received its first reading on 1 April 2026 and is scheduled for its second reading at the Legislative Council.
The CARF/CRS2.0 Bill, together with the Enhanced Administration Bill broadly aligns with most of the features proposed in the consultation paper jointly issued by the Financial Services and the Treasury Bureau (FSTB) and the IRD on 9 December 2025 (“the Consultation Paper”), on which we provided our observations in our previous article.
The passing of the CARF/CRS2.0 Bill together with the Enhanced Administration Bill will allow Hong Kong to introduce CARF and CRS2.0 in a timely manner in 2027 and 2028, respectively, as committed by the Hong Kong SAR Government.
From now until the new rules take effect, there is no longer time to remain on the sidelines. The implementation of CARF and CRS2.0 by relevant intermediaries in Hong Kong will be far from straightforward, requiring thoughtful planning and efficient execution starting today.
In this Hong Kong AEOI Updates, we shall highlight the key features and implementation timeframe of the CARF/CRS2.0 in Hong Kong.