The Hong Kong ORS is not exempt from CRS/FATCA reporting; which means the ORS is not recognized internationally for deferral of income. ORS402(b) is an exempt from CRS and FATCA reporting exempt beneficiary financial account.
WE provide the whitepapers to explain the difference between a Hong Kong ORS and our private label ORS402(b).
Overseas Financial Planners Beware:
• OECD: Common Reporting Standard (CRS) disclosure facility to close in on retirement schemes in Hong Kong allegedly set up to circumvent CRS reporting.
Several submissions to the disclosure facility highlighted the use of “Occupational Retirement Schemes” (ORSO) in Hong Kong allegedly intended to avoid reporting under the CRS. Certain registered ORSO schemes, unlike ORSO schemes exempted from registration, would qualify as non-reporting Financial Institutions for CRS reporting purposes under Part 2 of Schedule 17C to the Inland Revenue Ordinance (IRO).
The IRD further underlined that anti-abuse provisions under section 61C in the IRO can be applied to counteract arrangement whose main purpose, or one of the main purposes is to avoid due diligence and reporting obligations under Part 8A of the IRO incorporating CRS reporting obligations.