Introduction to CRS (Common Reporting Standards)

1. What are the Common Reporting Standards (CRS)?

In support of the principle of reciprocity, governments around the world are introducing new data collection and reporting requirements for financial institutions, known as CRS. If you are not obliged to pay tax in Hong Kong, FUTU HK may be required to report this situation and your account details to the Hong Kong Inland Revenue Department. These data will be transmitted to tax authorities in other countries or regions.


2. Which institutions are affected?

Financial institutions, including FUTU HK.


3. Why is CRS relevant to me?

If your resident jurisdiction is participating in the CRS, your financial information will be reported.


4. Which clients in FUTU HK are affected?

All customers. Asset value is not a factor in determining whether a customer needs to report. Regardless of the high or low value of assets, FUTU HK is also responsible for collecting the specified data and transmitting it to the Inland Revenue Department of Hong Kong.


5. Can I choose not to declare my data?

No. The CRS has been incorporated into the Inland Revenue Ordinance. FUTU HK is legally responsible for establishing and using appropriate procedures to collect the specified data and transmit it to the Inland Revenue Department. If you have declared all your tax liabilities, you do not need to worry.


6. What are the clients' responsibilities?

All clients are required to provide their self-identification before December 31, 2017. FUTU HK will confirm the specific CRS data to the clients when the clients log in.


7. Where can I find CRS information?

The Inland Revenue (Amendment) (No. 3) Ordinance 2016(the "Amendment Ordinance") provides a legal framework for the new international standard for automatic exchange of financial account information in tax matters (AEOI)  in Hong Kong. Automatic data exchange will for the first time in 2018, please refer to the Hong Kong tax official website, http://www.ird.gov.hk/chi/tax/dta_aeoi.htm