Hong Kong Passes 2026 AEOI Amendment Bill: What Businesses Should Know

The Hong Kong Government welcomed the passage of the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 by the Legislative Council on 17 June 2026. The amendment enhances Hong Kong's administrative framework for the automatic exchange of financial account information in tax matters (AEOI).

Hong Kong has conducted AEOI with partner tax jurisdictions annually since 2018 under the OECD Common Reporting Standard, with safeguards for data confidentiality and security. The regime assists tax authorities in assessing tax residents and combating cross-border tax evasion.

According to the Government's announcement, new requirements will take effect from 1 January 2027. These include requiring reporting financial institutions to register with the Inland Revenue Department, strengthening due diligence record-keeping requirements, and increasing penalties to enhance deterrence.

For businesses, financial institutions and groups with cross-border structures, the update is a reminder to review tax residency information, financial account documentation, due diligence records and internal compliance processes. Companies with overseas shareholders, directors, bank accounts or investment structures should keep clear supporting records and monitor further IRD guidance.

This article is for general information only and should not be treated as tax advice. For case-specific questions, businesses should consult professional advisers.

Source: Inland Revenue Department / Information Services Department, https://www.ird.gov.hk/eng/ppr/archives/26061706.htm