Hong Kong’s Inland Revenue Department on February 2 published in the official gazette a law providing the legal framework for Hong Kong to join a multilateral tax agreement on implementing automatic exchange of information in tax matters (AEOI), automatic exchange of country-by-country reports of multinational corporations, and spontaneous exchange of information on tax rulings, a government spokesman said.
The new law would enable Hong Kong to implement AEOI and meet its committments under the OECD/G20 base erosion and profit shifting (BEPS) package.
The government said it would prefer to implement these measures through the Multilateral Convention on Mutual Administrative Assistance in Tax Matters rather than continue using a bilateral approach.
By implementing these measures, Hong Kong will reduce the risk of being labeled by the EU as a “non-cooperative tax jurisdiction,” the government said.
The government also said it will seek to complete the procedures for participating in the Multilateral Convention as soon as practicable.
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