Employee resigning or leaving Hong Kong: do I file IR56F or IR56G?

IR56F: employment ending (including death). An employer about to stop employing a person who is likely to be chargeable to salaries tax must notify the Inland Revenue Department (IRD) in writing at least 1 month before the person ceases to be employed (section 52(5)). Use Form IR56F, and give the employee a copy.

IR56G: employee leaving Hong Kong for good or a long period. If an employee who is chargeable to salaries tax is about to leave Hong Kong for more than a month, the employer must notify the IRD no later than 1 month before the expected departure (section 52(6)), using Form IR56G (two copies). This does not apply if the job requires the person to leave frequently.

Payment hold (section 52(7)). After giving notice under section 52(6), the employer must not make any payment of money or money's worth to the employee for one month from the date of the notice unless the Commissioner agrees in writing. This is meant to protect the tax. Plan final pay and bonuses around it.

Annual return. You need not file IR56B for such an employee for the same year if IR56F or IR56G has already been filed.

Practical tip: diarise the dates on resignation. Where the notice period is short, notify the IRD as soon as the leaving date is known. Penalties apply for non-compliance without reasonable excuse.