Inland Revenue (Amendment) (No. 2) Ordinance 2019

The Inland Revenue (Amendment) (No. 2) Ordinance 2019 was gazetted on 1 March 2019.  Part 4 of this Amendment Ordinance contained the amendments relating to automatic exchange of financial account information in tax matters (AEOI).

Part 4 of this Amendment Ordinance is mainly to –

1. clarify that the concept of “controlling person”, in relation to a trust, covers trustees and beneficiaries;
2. clarify that controlling persons are to be identified, in relation to any legal person which is functionally equivalent or similar to a trust, in a way similar to the way in which controlling persons are identified in relation to a trust;
3. provide that the term “investment entity” is to be interpreted in a manner consistent with the recommendations of the Financial Action Task Force;
4. incorporate the residency rules in relation to financial institutions (other than trusts) that do not have a residence for tax purposes;
5. provide that the Commissioner may publish non-statutory guidelines on the interpretation of AEOI related provisions;
6. remove Mandatory Provident Fund Schemes, Occupational Retirement Schemes registered under the Occupational Retirement Schemes Ordinance (Cap. 426), pooling agreements, approved pooled investment funds and credit unions from the list of non-reporting financial institutions; and
7. add 51 jurisdictions to the list of reportable jurisdictions (in addition to the 75 jurisdictions already included in the current list).

Click here to view full content of this Amendment Ordinance.

Click here to view the Press Release announced on 1 March 2019.