On 20th May 2026,The Inland Revenue (Amendment) Bill 2026 will be gazetted on May 22 and introduced to Hong Kong’s Legislative Council on June 3, aiming to implement the OECD’s Crypto-Asset Reporting Framework (CARF) and amended Common Reporting Standard (CRS), requiring crypto-asset service providers to register with the IRD and undergo due diligence, with automatic tax information exchange on crypto-asset transactions with international partners scheduled to begin in 2028 alongside the upgraded CRS.This legislative update addresses rapid digital asset expansion by mandating the annual automatic exchange of tax information regarding crypto-asset transactions to mitigate cross-border tax evasion and maintain Hong Kong’s financial center status.Scheduled for a 2027 rollout, CARF requires crypto-asset service providers with a Hong Kong nexus to register with the Inland Revenue Department and comply with standardized due diligence, return filing, and record-keeping protocols. Following positive stakeholder feedback from a recent public consultation, the government finalized the draft bill, with subsequent technical guidance forthcoming.
Sources:https://www.ird.gov.hk/eng/ppr/archives/26052005.htm