Automatic Exchange of Information – AEoI
In Singapore, the Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016 ("CRS Regulations") will come into effect on 1 January 2017. The CRS is an internationally agreed standard for the automatic exchange of financial account information ("AEOI"), endorsed by the OECD and the Global Forum for Transparency and Exchange of Information for Tax Purposes, to deter and detect tax evasion through the use of offshore bank accounts. More than 100 jurisdictions, including major financial centres such as Hong Kong, Luxembourg and Switzerland, have endorsed the CRS and will commence AEOI in either 2017 or 2018. The CRS Regulations empower and require all financial institutions ("FIs") to put in place necessary processes and systems to obtain CRS information from account holders (known as the "Wider Approach") that open a new account with the FIs from 1 January 2017. FIs will have to establish the tax residency status of all their account holders using the information they have and transmit to the Inland Revenue Authority of Singapore ("IRAS") in 2018 the CRS information of account holders that are tax residents of jurisdictions that Singapore has a Competent Authority Agreement ("CAA") for CRS with. A CAA enables the implementation of information exchange based on existing legal instruments such as the Convention on Mutual Administrative Assistance in Tax Matters or bilateral tax treaty
More details on the CRS can be found on IRAS' website: www.iras.gov.sg/irashome/crs
In Hong Kong, the Inland Revenue (Amendment) (No. 3) Ordinance 2016, which commenced operation on 30 June 2016, put in place a legislative framework for Hong Kong to implement AEOI. An Amendment bill which seeks to expand the list of reportable jurisdictions to cover 75 reportable jurisdictions for the more effective implementation of the arrangement relating to AEOI was passed by the LegCo on 7 June 2017. The Inland Revenue (Amendment) (No. 2) Ordinance 2017 came into operation on 1 July 2017.
More details on AEOI for Hong Kong can be found under the website of Inland Revenue Department of HKSAR: www.ird.gov.hk/tax/dta_aeoi
List of Reportable jurisdictions for Hong Kong can be found under the website: www.ird.gov.hk/eng/tax/aeoi/rpt_jur