As an employer in Hong Kong, you need to consider about reporting obligations to Hong Kong Government once you hired an employee. In this article, we are going to explain about a very important reporting form for both employees and employers called IR56G. This form plays an essential role when an employee not only decides to leave his job but also Hong Kong.
What is the IR56G Form?
IR56G form is a document, officially titled as “Notification by an employer of an employee who is about to depart from Hong Kong.” Therefore, employer need to submit the form to the Inland Revenue Department (IRD) within 1 month before employee departs from Hong Kong. IR56G form is a part of tax clearance process for both employer and employee and it is better to prepare two copies when submitting. This form helps IRD to check the departing employee’s tax liability before they leave Hong Kong. That’s why submitting the form is the legal requirement and failing to comply can lead to legal issue. Settling the form prevent both parties from future complications.
How to Complete the IR56G Form
Filling out the IR56G form requires detailed information about the departing employee and their earnings. Here’s a step-by-step guide:
- Download Application: Get IR56G form here.
- Employee’s Personal Information: Include the employee’s full name, identity card number, and residential address.
- Departure Details: Provide the date of departure and the reason for leaving Hong Kong.
- Earnings and Deductions: List all earnings, including salary, bonuses, and allowances, up to the departure date. Deductible expenses such as retirement scheme contributions should also be detailed.
- Other Income: Include any additional income earned by the employee, such as rental income or director’s fees.
- Employer’s Declaration: The form must be signed by a responsible officer of the company, confirming that the information provided is accurate.
Submission Process
After Completing the form, employer can submit it to IRD by e-filing service or by mail. Please make sure to keep a copy of the submitted form for your record and also give 1 copy to the employee to do the tax clearance.
After Submission
IRD will issue a tax assessment notice to employee after they had accepted the form. Notice will include any taxes due which must be paid before the employee’s departure. To avoid any delay in departure, it is necessary to settle the taxes properly.
Why You Need Professional Service
Handling HR and financial matters are truly time consuming as it is required to be detailed oriented in every page. When it is concerned with laws and regulations issued by government, it is better to be cared by professional to run the process smoothly without risking anything such as time and money. Fastlane HR can manage these essential business tasks, such as assisting you in completing your IR56G on your behalf! Contact Fastlane HR for further assistance!