⚠ Critical Deadline Alert: IR56G Departure Clearance
Under the Inland Revenue Ordinance, your employer must file Form IR56G at least one month before your departure date. If the employer fails to file — which happens in roughly 1 in 4 expat departures — the IRD can issue a stop-departure notice, prevent you from leaving Hong Kong, and raise an estimated assessment that may be many times higher than your actual tax liability. We have seen assessments of HK million+ when the actual liability was under HK0,000.
常见挑战
Double Taxation Without a Treaty Claim
Hong Kong has CDTAs with 45+ jurisdictions. However, DTA relief is not automatic — it must be actively claimed in both countries. Without a coordinated filing strategy, you legally owe tax in two countries on the same salary.
⚠ Risk: Paying full tax in two jurisdictions on the same income
RSUs & Share Options Taxed in the Wrong Year
Under IRO s.9(1)(d) and DIPN No. 38, RSUs are taxed at vesting while options are taxed at exercise. Employer-submitted IR56B forms routinely apply the wrong date and wrong apportionment, generating substantial overpayments.
⚠ Risk: Overpaying HK salaries tax by HKK–HK0K per year
Rental Allowance Assessed at Full Market Value
Employer-provided housing structured as a company lease is assessable at only 10% of your net chargeable income under s.9(2A). Cash housing allowances are taxed in full — the difference can exceed HK0,000 per year for senior executives.
⚠ Risk: Overpaying HK0K–HK0K annually on housing benefit
Departure Clearance Missed or Filed Too Late
Form IR56G must be lodged by your employer at least one month before your departure. Late or omitted filing can result in estimated assessments two to five times the actual liability, plus potential stop-departure orders.
⚠ Risk: Phantom assessment of HK0K–HKM+ with no deductions applied
适合对象
Foreign nationals on Employment Visa
Newly arrived or established expats on all visa categories, filing first or subsequent HK returns.
Executives on split contracts (HK + home country)
Expat packages with dual-entity employment structures requiring coordinated filing in both jurisdictions.
Bankers and finance professionals with equity structures
RSUs, share options, carried interest, and deferred compensation requiring DIPN 38 apportionment.
US persons (FATCA) in Hong Kong
US citizens and Green Card holders requiring coordinated HK and US filing — FBAR, Form 8938, FEIE and FTC strategies.
Executives departing HK requiring IR56G clearance
Foreign nationals leaving Hong Kong who need departure clearance management and final assessment handling.
我们的服务
Annual Salaries Tax Return Filing
Comprehensive preparation of BIR60 with all available deductions: charitable donations, home loan interest, self-education, dependent allowances, and MPF contributions.
IRO s.12, s.26, s.30–46
DIPN 38: Share Option & RSU Taxation
Precise computation of the HK-taxable portion of options and RSUs using the DIPN No. 38 time-apportionment formula with supporting documentation.
IRO s.9(1)(d); DIPN No. 38
IR56G Departure Clearance Management
Complete departure clearance process: briefing employer HR, reviewing IR56G before submission, tracking provisional assessment, and responding to IRD queries.
IRO s.52; IR56G requirements
Double Tax Treaty Relief Claims
Analysis of applicable CDTAs to determine residency tie-breaker rules, exempt categories of income, and the optimal structure for claiming relief in both jurisdictions.
45+ CDTAs; IRO s.49; IRD CRS form
Rental Allowance Structuring
Restructure housing benefits under IRO s.9(2A) — using a company lease rather than a cash allowance to cap tax exposure at 10% of assessable income.
IRO s.9(2A); Salaries Tax Practice Note
服务流程
Free 20-Minute Discovery Call
30 minsWe discuss your situation: nationality, visa type, contract structure, equity awards, home-country filing obligations, and departure plans.
Document Collection & Diagnosis
2–3 daysYou provide payslips, IR56B forms, equity award agreements, and prior returns. We conduct a comprehensive diagnostic against DIPN 38 formulas and DTA applicability.
Strategy Memo & Fee Proposal
4–7 daysWritten strategy memorandum covering the tax position as filed vs the correct position, identified savings, recommended actions, and a fixed-fee proposal.
Return Preparation, Filing & IRD Liaison
Weeks 2–4We prepare your BIR60, all schedules, and supporting documentation. All returns reviewed by a senior CPA before filing. We act as your authorised tax representative for all IRD correspondence.
成功案例
UK Investment Banker — RSU Apportionment Error
- •Annual salary split 65/35 between HK and UK entities
- •Employer reported 100% RSU vestings as HK-sourced for 3 years
- •DIPN 38 time-apportionment corrected across all tranches
“TAX.hk discovered my employer had been incorrectly reporting my RSU vestings at 100% HK-sourced. The refund was substantial.”
French Executive — HK.1M Estimated Assessment
- •Employer HR failed to file IR56G before departure
- •IRD issued HK.1M estimated assessment with no deductions
- •Objection filed; correct computation reduced assessment to HK0K
“TAX.hk reduced my estimated assessment from HK.1 million to HK0,000 — a 91% reduction.”
常见问题
Am I liable for Hong Kong salaries tax from the first day I arrive?
Yes. Under the IRO, you become liable for HK salaries tax on income arising in or derived from Hong Kong from the first day you begin working here. There is no minimum residency period. The tax year runs 1 April to 31 March, and your first-year return covers from your HK employment start date to 31 March.
How does DIPN No. 38 work for RSUs?
The HK-taxable amount is calculated as: (Vesting Date Market Value) x (HK Service Days / Total Vesting Period Days). If an RSU was granted before you arrived in Hong Kong, the days prior to your HK arrival are excluded from the numerator. Many employer IR56B submissions fail to apply this formula, leading to material overpayments.
My employer pays my rent directly. Is that fully taxable?
It depends on the structure. Under IRO s.9(2A), if your employer has a company lease and pays rent directly to the landlord, the taxable housing benefit is capped at 10% of your assessable income. A cash housing allowance, however, is treated as ordinary income taxed in full. The difference can exceed HK0,000 per year.
What happens if I leave Hong Kong and my employer does not file IR56G?
The IRD may raise an estimated assessment based on assumed income with no deductions — routinely far higher than actual liability — and can issue a stop-departure notice. Even after departure, the IRD can pursue outstanding tax through international cooperation mechanisms. Contact us immediately if you discover non-filing.
Does Hong Kong tax my overseas pension income?
Generally no. Under the territorial source principle, an overseas pension from a foreign fund for prior foreign employment is not HK-sourced and is not subject to HK salaries tax. However, if you contributed to an overseas pension while working in HK, a partial HK source may arise. Most foreign pensions (UK state, US Social Security, French retraite) are not taxable in HK.
需要专业税务服务？
立即联系我们的专业团队，获取免费咨询和报价。我们为个人及企业提供全面的香港税务服务。