IR56G completion guide for employers
1. Employee’s departure date
2. Employee details
3. Marital status and spouse details
4. Position held
5. Period of employment
6. Total income
7. Other information
MPF, payment in lieu of notice, rental allowance, other remuneration, etc. must also be reported. You may refer to another article on General Accounting’s BLOG about completing BIR56A and IR56B: Employer’s Tax Return Guide
8. Estimated amount of money to be withheld from salary
Remember: Item 15 of IR56G is very important!
“Have you withheld any money (including money to be paid) in accordance with section 52(7) of the Inland Revenue Ordinance?”
You must tick “Yes” and enter the estimated amount. Under section 52(7) of the Inland Revenue Ordinance, the employer must withhold the employee’s salary until the employee completes the departure tax clearance procedures and the employer receives the Letter of Release issued by the IRD. Only then may the employer pay the final salary to the employee.
Source: About to Leave Hong Kong – Tax Obligations for Employers and Employees
9. Reason for leaving Hong Kong
More details: Employer’s Tax Return (IR56G) Completion Guide
Download IR56G and submission methods
Employers may download the Notification by an Employer of an Employee Who Is About to Depart from Hong Kong from the IRD website, or complete Form IR6163 to request the IR56G tax clearance form from the IRD. After completing and signing the form, submit it in person to the IRD one month before the employee leaves Hong Kong.
Further reading: Employers’ Reporting Obligations | IR56M Completion Guide
Submit IR56G online
Employers may also log in to the Employer e-Filing platform via an eTax account to complete and submit the IR56G tax clearance form online.
The authorised signatory must authenticate and sign the Notification by an Employer of an Employee Who Is About to Depart from Hong Kong via an eTax account using an eTax Password, a GovHK Password, a recognised personal digital certificate, or an iAM Smart+ account.
Source: Employer e-Filing
Key points to note for the IR56G employee tax clearance form
1. A signed original employee tax clearance form must be submitted; photocopies are not accepted
2. Provide the employee with a completed copy of IR56G for tax clearance purposes
3. If the employee’s total income changes after submission, submit an “Additional IR56G” to amend the information
4. The form must be signed by a director, partner, proprietor, senior officer, or manager
Frequently Asked Questions
What is Form IR56G, and under what circumstances must an employer submit it?
IR56G(full title: Notification by an Employer of an Employee Who Is About to Depart from Hong Kong) is a statutory form required by the Hong Kong Inland Revenue Department. When an employee intends toleave Hong Kong permanently, orleave Hong Kong for more than one month, the employer must submit this form to the IRD to notify the authority to process departure tax clearance for the employee. This ensures the employee settles all Salaries Tax payable before departure.
When should an employer submit IR56G?
- How to calculate: If the employee is expected to leave Hong Kong on 30 June, the employer must submit it no later than 30 May.
- Submission methods: Online submission via the "eTax" platform is recommended, or you may mail/submit the paper form in person to the Tax Centre.
After submitting IR56G, must the employer withhold the employee’s salary?
- When can it be paid? The employer must wait until the IRD issues aLetter of Release before releasing the withheld amounts to the employee.
- Risk alert: If the employer releases the payment without IRD approval, the employer may be liable for the employee’s outstanding tax.
If IR56G has already been submitted, is it still necessary to file the year-end IR56B for that employee?
No. If you have submitted Form IR56G for an employee who has resigned and left Hong Kong within the same year of assessment (i.e., 1 April to 31 March of the following year), youdo not need to file the annual IR56B for the same employee. This avoids duplicate reporting of remuneration information.
What are the key points to note when completing Form IR56G?
- Departure date: The expected departure date entered must be1 month after the form submission date.
- Amount withheld: For item 15, "whether any amount has been withheld", you must tick"Yes" and enter the estimated amount to comply with legal requirements.
- Employee copy: After submission, the employer must provide the employee with acopy of the completed IR56G, which is a required document for the employee to complete tax clearance procedures at the IRD.
What if the employee’s departure date or salary changes after submitting IR56G?
If, after submitting the form, you find that the employee’s expected departure date is postponed, or the actual total income differs from the estimate, the employer should submit an"Additional IR56G" to the IRD as soon as possible to amend the relevant information and ensure the tax clearance amount is accurate.
Summary:
Form IR56G is the Hong Kong Inland Revenue Department’s employee departure tax clearance form, used to notify the IRD of tax settlement procedures when an employee will be leaving Hong Kong for an extended period. Employers must submit the IR56G tax clearance form one month before the employee’s departure, stating the employee’s departure date, personal details, marital status, position, period of employment, total income, etc., and withhold salary in accordance with section 52(7) of the Inland Revenue Ordinance. After the IRD issues a Letter of Release, the employer may pay the final salary.
The Notification by an Employer of an Employee Who Is About to Depart from Hong Kong may be submitted in paper form or electronically online, and must be signed by an authorised person such as a director or proprietor.
Further reading:
