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
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:
