If an employee who is subject to salaries tax intends to leave Hong Kong to settle, study or take a job in another place, he must notify the Inland Revenue Department one month before leaving Hong Kong. Generally speaking, if he is going to leave Hong Kong for more than one month, he has to notify his employer of the matter, and the employer has to do the following:
• One month before the employee leaves Hong Kong, fill in Form IR56G to the Inland Revenue Department
• Give the employee a copy of the completed IR56G so that he can go to the Inland Revenue Department to go through the tax clearance procedures
• The employer should withhold the final payment due to the departing employee until one month after filling in the IR56G or until the IRD issues a release agreement, whichever is the earlier
Employers and employees who fail to notify the Inland Revenue Department and go through tax clearance procedures regarding their departure from Hong Kong will be punished as a result. The departing employee must bring a copy of the IR56G form to the Inland Revenue Department and fill in the tax return for individuals. He also needs to inform the Inland Revenue Department of his Hong Kong or overseas mailing address and telephone number after leaving Hong Kong to facilitate future contact.
The above information is for reference only. If in doubt, we welcome your tax inquiries