CRS is a global initiative by the Organisation for Economic Co-operation and Development (OECD) for the automatic exchange of financial account information between countries or regions to combat tax evasion, requiring financial institutions to report financial account information.

 

Since 1 January 2017, the Hong Kong financial institutions (including AIA) are required to collect self-certification by customers and perform due diligence procedures in order to identify the customers' tax residence status. Certain financial account information with respect to reportable accounts will be reported to the Hong Kong Inland Revenue Department.

Generally speaking, clients that hold financial accounts (such as policies with cash value) with Financial Institutions in Participating Jurisdictions, including AIA International Limited, will be subject to CRS required due diligence procedures. Clients affected include individuals (whether banking directly or indirectly through an entity), sole proprietors and entities such as corporations, partnerships and trusts. Generally, clients that are identified as reportable persons, (i.e., tax residents of reportable jurisdictions), will be subject to reporting. 

Place of tax residence is referred to in the Inland Revenue (Amendment) (No. 3) Ordinance 2016 ("the Amendment Ordinance") as "jurisdiction of residence", which means a territory of which an individual or entity is a resident for tax purposes.

 

That a person has paid taxes charged by a jurisdiction (e.g., value-added tax, withholding tax or capital gains tax) does not automatically render that person a tax resident of that jurisdiction. For assistance in determining your country (or countries) of tax residence, please seek professional tax or legal advice. Neither AIA nor any of its employees are able to assist in this matter.

Customers should refer to the guidance provided by the tax authorities or OECD to determine the tax residence status. Customers should also consult legal or tax professional to determine the tax residence status. AIA is not in a position to assist customers to determine customers' tax residence status.

 

OECD / Tax authority website:

In line with the CRS requirements, the following information is collected:

It is customers' obligation to provide correct and updated self-certification to AIA.

 

If customers fail to provide a valid CRS self-certification, AIA may not accept the account opening request.

 

It is an offence under section 80(2E) of the Inland Revenue Ordinance if any person, in making a self-certification, makes a statement that is misleading, false or incorrect in a material particular AND knows, or is reckless as to whether, the statement is misleading, false or incorrect in a material particular. A person who commits the offence is liable on conviction to a fine at level 3 (i.e. $10,000).

An account holder should report all changes in his / her tax residence status to the reporting financial institution. The account holder should advise AIA International Limited of any change in circumstances which affects the tax residency status or causes the information contained in the previously submitted self-certificate to become incorrect, and to provide AIA International Limited with a suitably updated self-certification form within 30 days of such change in circumstances.

For trust that is categorized as a passive NFE, the controlling persons of the trust (including settlor, trustee, protector or enforcer, beneficiary or member of the class of beneficiaries, and other individual who exercises control over another entity being the settlor/trustee/protector or enforcer/beneficiary) will be subject to CRS due diligence procedures.

AIA International Limited will provide the legally required information to the tax authorities, including information in the CRS self-certification and details about products and policies a customer holds with AIA International Limited, such as the account balances or values and the total amount of interest or payments credited.

 

For details of reportable jurisdiction, please refer to IRD : Reportable Jurisdictions.

Customers may submit a request to AIA for obtaining a copy of CRS information reported by AIA to the Hong Kong Inland Revenue Department.

AIA must retain records of the documentary evidence, or a notation or record of the documents reviewed and used to support the customers' status for a period of 6 years beginning on the date on which the procedures are completed.

 

According to PDPO, AIA will take all reasonable and practical steps to ensure that the personal data held is accurate and correct. The retention period must not be longer than necessary for the original purpose.