Global Daily Tax News, Hong Kong Signs Off On CARF Legislation, (Jun 22, 2026)

Hong Kong's Legislative Council has approved the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026.

The legislation will implement the Crypto-Asset Reporting Framework (CARF) and the latest amendments to the Common Reporting Standard (CRS) in Hong Kong. The draft law will be published in the Official Gazette on May 22, 2026.

The CARF provides for the automatic exchange of tax-relevant information on crypto-assets and was developed to address the rapid growth of the crypto-asset market. It will expand the scope of the Common Reporting Standard (CRS) – the international standard providing for the automatic exchange of information in tax matters – to certain electronic money products and central bank digital currencies.

Changes have also been made to ensure that indirect investments in crypto-assets through derivatives and investment vehicles are now covered by the Common Reporting Standard.

Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, earlier said: "CARF will be implemented next year. Crypto-asset service providers with reporting nexus with Hong Kong will be required to register with the Inland Revenue Department (IRD), and fulfil requirements including due diligence, return filing, and record keeping."

"Subject to the implementation progress of the relevant jurisdictions, we plan to commence the automatic exchange of tax information on crypto-asset transactions with them starting from 2028, and implement the amended CRS in the same year. Hong Kong will implement the automatic exchange of tax information with suitable partners on the premise of data confidentiality and security and on a reciprocal basis," he said.

The Inland Revenue Department intends to release guidance shortly on technical implementation of the measures.