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What is exchanged
CRS is automatic exchange of account information among participating jurisdictions. Hong Kong institutions report specified account-holder data to the IRD, which transmits it to the partner authority under IRO Schedule 17D. What moves is data, not an assessment — chargeability is decided by each jurisdiction under its own tax law.
The mechanism and its legal basis
CRS is an OECD standard operated among participating jurisdictions through the Multilateral Competent Authority Agreement. Hong Kong’s legal basis is IRO Schedule 17D (introduced by the Inland Revenue (Amendment) (No. 3) Ordinance 2016), effective 1 January 2017, with the first outbound exchange in September 2018. The Mainland side rests on the six-ministry Public Notice [2017] No. 14, effective 1 July 2017. The competent authorities are the IRD and the State Taxation Administration.
What is exchanged
Name, address, tax-residence jurisdiction and TIN, date of birth (individuals), account number, and the reporting institution’s name and identifying number — for the holder or any controlling persons. Account data covers the year-end balance or value, together with interest, dividends and gross proceeds from sales or redemptions of financial assets — all on a gross basis, with no netting of expenses.
Who reports
Reporting financial institutions cover depository institutions, custodial institutions, specified insurance companies and investment entities; governmental entities, central banks, listed corporations and their related companies, and retirement funds are exempt. An entity within the definition must file a nil return even if it has nothing to report — “nothing to report” is itself a filing obligation.
Due-diligence thresholds
Review obligations are tiered by account class (see table): pre-existing individual accounts at or below US$50,000 are excluded; those above US$1 million attract enhanced due diligence; pre-existing entity accounts at or below US$250,000 are excluded; new accounts — individual and entity — are all reviewed.
Lists and currency
The list of reportable jurisdictions changes with the partnerships activated each year; the IRD’s AEOI page is the authoritative source. We do not reproduce the list here — a stale list misleads more than none at all.
Consequences
A false self-certification given to an institution can lead the account to be refused, frozen or closed, and can trigger a suspicious transaction report; Schedule 17D carries its own penalties for non-compliant reporting. Note the distinction: the exchange itself creates no tax liability, but the exchanged data become a lead for the receiving authority’s own checks.
CRS due-diligence thresholds
| Account class | Threshold | Treatment |
|---|---|---|
| Pre-existing individual | ≤US$50,000 | Excluded from review |
| Pre-existing individual (high value) | >US$1,000,000 | Enhanced due diligence |
| Pre-existing entity | ≤US$250,000 | Excluded from review |
| New accounts (individual / entity) | No threshold | All reviewed |
Thresholds and the list of reportable jurisdictions follow the IRD’s AEOI page as currently published.
FAQ
CRS is an automatic exchange of information (AEOI) between participating jurisdictions. Financial institutions report account data of tax residents of reportable jurisdictions — Hong Kong under IRO Schedule 17D, the Mainland under the six-ministry 2017 No. 14 Announcement. CRS exchanges information only; it does not itself create any tax liability. Liability is determined independently under each jurisdiction's tax law. Structure and classification (e.g. Active vs Passive NFE) matter — seek professional assessment rather than assuming privacy.
Case-specific decisions differ — book a consultation with our advisers.
The content of this page is general professional information and does not constitute tax, legal or investment advice. For specific cases, please consult a Hong Kong practising accountant or tax adviser, or refer to official publications of the IRD / SFC / HKMA / CR.