To help protect the integrity of tax systems, governments around the world are introducing a new information-gathering and reporting requirement for financial institutions. This is known as the Common Reporting Standard (“the CRS”) .
The Inland Revenue (Amendment) (No. 3) Ordinance 2016 (“the Amendment Ordinance”) came into effect on 30 June 2016 and has put in place a legislative framework for Hong Kong to implement the new international standard on Automatic Exchange of Financial Account Information (“AEOI”). The first exchange of information will occur by 2018. You can find more information on the Hong Kong Inland Revenue Department website. http://www.ird.gov.hk/eng/tax/dta_aeoi.htm
Under “the Amendment Ordinance”, GTSGL is required to determine where you are “tax resident” (this will usually be where you are liable to pay income or corporate taxes) effective from 1 Jan 2017. We will base this on information we have already or we may ask you for additional details.
If you are tax resident in Countries/Territories outside Hong Kong then we may be required to provide details, including information relating to your accounts by submission of Reportable Account Information to Hong Kong Inland Revenue Department. They may then share that information with the tax authorities of other countries and territories where you are tax resident.
If you are identified by GTSGL as a tax resident of HKSAR only, GTSGL will not submit your information relating to your account to HKIRD.
In order to confirm your status under the CRS, Client need to complete the appropriate self-certification form upon account opening or when there is any change in your tax residency. There are three types of self-certification form for the CRS as per below:-
- Individual Self-Certification Form : If you open or maintain an individual or joint Securities Account, please use this form to confirm your personal status under the CRS.
- Entity Self-Certification Form : If you open or maintain a Corporate securities account with GTSGL, please use this form to confirm your business’ status under the CRS.
- Controlling Person Self-Certification Form : This form is used by the Controlling Persons of certain Entities (referred to under the CRS as Passive Entities) including certain trusts, foundations and managed Investment Entities located in countries that do not participate in the CRS. Controlling Persons are those individuals that control the Entity, either by ownership or control by other means. A Controlling Person in certain circumstances will be referred to as the Senior Managing Official.
If you have any questions regarding your tax residency, please refer to the rules governing tax residence( http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/) that have been published by each local tax authority. If you need advice about your tax position, please contact a professional tax and/or legal advisor as GTSGL is unable to provide tax advice. You may also find useful guidance on the Hong Kong Inland Revenue Department website http://www.ird.gov.hk/eng/tax/dta_aeoi.htm and the OECD CRS portal. http://www.oecd.org/tax/automatic-exchange/common-reporting-standard/