AEOI involves the reporting of information relating to financial accounts by Reporting Financial Institutions like HKSCC to the HK IRD, and by the HK IRD to tax authorities of jurisdiction(s) with which Hong Kong has entered into an AEOI agreement known as a Competent Authority Agreement or CAA.
We note that the Hong Kong legislation that, as of the date of this FAQ, has been passed to increase the number of jurisdictions whose tax residents would be reported (in 2018) by a Reporting Financial Institution to the HK IRD relating to 2017 (more specifically, relating to the second half of 2017 starting 1 July 2017). Under such legislation, a significant number of reportable jurisdictions would be so added for purposes of reporting relating to 2017. Please also refer to below FAQ.
Information on Individual Investor Participants who are treated as resident for tax purposes in a CAA jurisdiction or other relevant jurisdiction, as well as on certain Corporate Investor Participants that are treated as resident for tax purposes in such jurisdiction, are generally reportable by HKSCC to the HK IRD and may generally be reported by the HK IRD to such jurisdiction.
In addition, information on “controlling person(s)” (within the meaning of the AEOI rules) of a Corporate Investor Participant that is treated as a “passive NFE” for AEOI purposes is generally reportable by HKSCC under AEOI where a “controlling person” is treated as resident for tax purposes in a CAA jurisdiction or other relevant jurisdiction.
The HK IRD Guidance on information to be reported under AEOI can be found on the IRD’s website here