1. What is the Common Reporting Standard (CRS)?

The Common Reporting Standard (CRS), also known as the Automatic Exchange of Financial Account Information (AEOI)[01] , is an information reporting and exchange rule established by the Organization for Economic Co-operation and Development (OECD) to combat tax evasion and maintain an effective tax system. Financial institutions in all participating countries/regions must comply with CRS requirements to collect information, make annual returns, and exchange information with other participating CRS countries/regions. Hong Kong is one of the regions participating in CRS.

2. Do all securities dealers have to participate in CRS?

All financial institutions in Hong Kong (including banks, insurance companies, asset management companies and securities dealers), including Longbridge Securities Hong Kong, must comply with the laws and regulations of CRS/AEOI.

3. Why is CRS relevant to me?

According to CRS, Hong Kong tax authorities require financial institutions, such as Longbridge Securities Hong Kong, to collect and report information related to the tax status of their customers.

If you open an account with Longbridge Securities Hong Kong or invest in new financial products, you will need to fill out and sign a self-certification form.

If you are already a customer of Longbridge Securities Hong Kong and your tax status or personal information changes, you need to notify us in time to update your tax information. Links

Self-certification Form Reference Information

4. Which type of customers will be affected by CRS due diligence and reporting?

Customers who hold financial accounts in financial institutions will be subject to the due diligence procedures required by CRS. Affected customers include individuals (whether holding financial accounts directly or indirectly through companies), sole proprietors and companies (such as institutions, joint ventures and trust funds). Generally speaking, customers identified as reportable (i.e. tax residents of the tax jurisdiction) will be reported in accordance with CRS regulations. Therefore, according to CRS, customers whose tax residence jurisdiction is only Hong Kong do not need to be reported.

5. What is the definition of "tax residence"?

Tax residence is the territory mentioned in the revised regulations where an individual or company is a tax resident in a certain country. Generally speaking, whether a person is a tax resident of a tax jurisdiction will be determined based on where the person is located or how long he/she has been there (for example, more than 183 days in a tax year), or in the case of a company, based on where the company is incorporated or where its central management and control takes place. If an individual or company is required to pay taxes by a jurisdiction, it does not mean that the individual or company automatically becomes a tax resident of that tax country. If you have any questions about your country of tax residence, please seek professional tax or legal assistance. Longbridge Securities and its employees are not able to provide you with tax advice.

6. What tax information do I need to provide for Longbridge Securities Hong Kong?

According to CRS requirements, we need you to provide the following information:

• Name

• Address

• Place of birth (individual)/Country of registration/Country of incorporation (company account)

• Date of birth

• Country of tax residence

• Tax number/Functionally equivalent taxpayer identification number (TIN) or no tax number reason

• Information on the actual controller of a specific corporate account (if applicable)

7. I have opened an account with Longbridge Securities Hong Kong. What specific information will be reported?

The information provided in the self-certification form and details of your Longbridge Hong Kong account, including but not limited to:

(1) Account balance or total value at the end of the year;

(2) Deposits credited to your account during the year (including dividends, interest, sales amount, etc., but excluding trading profits).

8. How often will my tax information be reported?

According to the requirements of relevant tax authorities, reporting is typically conducted on an annual basis.

9. Is my information and privacy safe?

Longbridge Securities Hong Kong attaches great importance to the privacy and information security of its customers, strictly abides by Hong Kong's personal privacy regulations and the relevant information security requirements of the China Securities Regulatory Commission, and only reports customer-related information to relevant tax authorities in accordance with legal provisions.

10. If I want to browse CRS related information, where can I find it?

For more information, please refer to the Hong Kong Inland Revenue Department's AEOI website or the Organization for Economic Co-operation and Development's AEOI website (English version only).

https://www.ird.gov.hk/eng/tax/dta_aeoi.htm