Form IR56G: notifying the Inland Revenue Department of an employee departing Hong Kong

What Is Form IR56G for Departing Employees

Form IR56G is the employer's notification to the Inland Revenue Department that an employee is about to leave Hong Kong. It allows the IRD to assess any outstanding tax liabilities before the employee departs.

The form is a core part of the IRD's tax clearance procedure. Its purpose is to prevent an employee from leaving Hong Kong with unpaid salaries tax or other tax debts. The IRD uses the information on Form IR56G to issue a final tax assessment and demand payment before the departure date.

IR56G Filing Requirement

Every employer with an employee about to leave Hong Kong must file. The obligation arises whether the employee is resigning, being terminated, or simply going overseas for an extended period. An employer must notify the IRD in writing using Form IR56G at least one month before the employee's intended departure date, or as soon as practicable if the departure is sooner.

You must provide the employee's name, Hong Kong Identity Card number, date of departure, and the total remuneration paid or payable up to the date of cessation. The employer must also state whether the employee has any outstanding tax liabilities.

Employee Leaving Hong Kong Tax

When an employee leaving Hong Kong tax is involved, the IRD will issue a tax clearance assessment. The employee must settle any outstanding salaries tax before departure. The IRD may refuse to issue a tax clearance certificate if there are unpaid taxes, which can affect the employee's ability to leave Hong Kong or re-enter in the future.

This tax clearance process applies to both local and foreign employees. A foreign employee leaving Hong Kong permanently must also obtain tax clearance before the IRD will release any final payments or benefits.

IRD IR56G Form

The IRD IR56G form is available on the Inland Revenue Department's website. It must be completed and submitted to the IRD's Employer Services Section. The form can be filed by post, by fax, or through the IRD's e-Services portal if the employer is registered for electronic filing.

Retain a copy of the completed form and any correspondence from the IRD regarding the tax clearance. This documentation may be required if the employee later queries their tax position.

Consequences of Not Filing

Failure to file Form IR56G can result in penalties. The IRD may impose a fine of up to HK$10,000 for non-compliance. If the employer does not notify the IRD and the employee departs with unpaid tax, the employer may be held liable for the outstanding amount.

The IRD takes this notification requirement seriously because it protects the revenue. An employer who knowingly fails to file Form IR56G may face prosecution under the Inland Revenue Ordinance.

What to Do Next

If an employee is about to leave Hong Kong, obtain Form IR56G from the IRD website. Complete it with the required information and submit it at least one month before the departure date. The IRD will then issue a tax clearance assessment and the employee must settle any outstanding tax before leaving.