In the committee stage of the ‘2026 Tax (Amendment) (Automatic Exchange of Information) Bill’, the Deputy Financial Affairs and Budget Bureau presented a series of amendment proposals aimed at balancing robust information exchange with practical implementation considerations for local financial institutions. The deputy highlighted concerns that the original text could impose disproportionate compliance costs on smaller banks and asset‑management firms, and therefore suggested introducing a graduated reporting threshold that allows entities below a certain transaction volume to submit simplified returns. Additional proposals include a pilot scheme for staggered disclosure timelines, clarifying the definition of ‘relevant financial accounts’ to avoid over‑reporting, and embedding data‑privacy safeguards to protect client confidentiality while meeting international standards. The deputy also urged the House to adopt a provisional timetable that aligns with global implementation schedules, ensuring Hong Kong remains competitive in the evolving landscape of tax transparency.