Hong Kong has taken decisive steps to reinforce its position as a transparent and compliant international financial centre, with a series of legislative developments in late June and early July 2026 targeting tax information exchange and anti-fraud measures.

AEOI Amendment Ordinance Gazetted

On 3 July 2026, the Inland Revenue (Amendment) (Automatic Exchange of Information) Ordinance 2026 was officially gazetted. The amendment enhances Hong Kong's administrative framework for the Automatic Exchange of Financial Account Information (AEOI) — the mechanism through which the territory shares financial account data with over 140 partner jurisdictions under the OECD's Common Reporting Standard (CRS).

The new ordinance introduces strengthened compliance procedures and clarifies reporting obligations for financial institutions operating in Hong Kong, aligning the city's AEOI regime more closely with evolving international standards. This follows the draft legislation published in April 2026, which proposed administrative enhancements including tighter deadlines for reporting and expanded information-sharing scope.

Crypto-Asset Reporting Framework on the Horizon

Less than a month earlier, on 12 June 2026, Hong Kong gazetted draft legislation on the Crypto-Asset Reporting Framework (CARF) alongside amendments to the existing CRS. The CARF, developed by the OECD, extends tax transparency obligations to crypto-asset service providers, requiring them to report transactions involving digital assets to tax authorities.

This marks a significant expansion of Hong Kong's tax reporting infrastructure into the digital asset space. Once enacted, crypto exchanges, wallet providers, and other intermediaries will be required to collect and report information on their users' crypto transactions for automatic exchange with relevant jurisdictions. The move places Hong Kong among the early adopters of this emerging global standard.

Pillar Two Progress and Broader Tax Relief

These transparency-focused reforms sit alongside Hong Kong's ongoing implementation of the OECD's Pillar Two global minimum tax rules. In May 2026, Hong Kong signed the Multilateral Agreement on exchange of GloBE information, reinforcing its commitment to the 15% global minimum effective tax rate for large multinational enterprises.

For businesses and individual taxpayers, the 2026-27 Budget delivered welcome relief. A one-off 100% reduction of profits tax, salaries tax, and tax under personal assessment for the 2025/26 year — capped at HK$3,000 per case — was passed by the Legislative Council on 13 May 2026 and gazetted on 22 May. The budget also increased personal allowances from the 2026/27 assessment year, with the basic allowance rising from HK$132,000 to HK$145,000 and the child allowance increasing to HK$140,000 per child.

IRD Warns of Fraudulent Emails

On 6 July 2026, the Inland Revenue Department issued a public alert regarding fraudulent emails purporting to be from the IRD. The department reminded taxpayers that it never sends emails requesting personal or financial information, and urged recipients of suspicious messages to report them to the police and contact the IRD directly.

These developments underscore a clear trajectory: Hong Kong is simultaneously tightening its tax reporting infrastructure, embracing new international standards for digital assets, and providing measured tax relief — a three-pronged approach aimed at preserving the city's competitiveness while reinforcing its credentials as a cooperative and well-regulated jurisdiction.