Hong Kong Removed from EU Watch List for Tax Reporting
This month, the Special Administrative Region Government for Hong Kong has shown gratitude for being removed from EU to its watch list on tax co-operation following an amendment by the EC, recognising Hong Kong's endeavors to partake in the Multilateral Convention on Mutual Administrative Assistance in Taxation Matters.
Hong Kong pledged to Europe in 2017 to take part in the AEOI, which promises a fully autonomous exchange of financial account data between all countries regarding taxation. In December last year, the EU placed Hong Kong and 40 other tax jurisdictions, on the watch list on the basis that these countries had exhibited responsibility to global tax co-operation.
The convention came into power in Hong Kong on the 1st of September; enabling the city to viably implement the AEOI and the BEPS (Base Erosion & Profit Shifting programme) as asserted by the OECD.
The EU has refreshed its watch list in light of such positive advancements, the administration stated. In the interim, Hong Kong has smoothly directed the primary trades with key jurisdictions under the AEOI with no preliminary issues, which is also a success.
Hong Kongs administration is reportedly positive about meeting the principal standards in the steps towards a universal tax co-operation and wishes to continue liaising closely with EU countries.
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