Leaving Hong Kong: Tax Clearance and Departure Procedure

Overview

Leaving Hong Kong is a significant transition, requiring careful planning to ensure tax clearance, financial settlements, and legal compliance. This guide outlines the key steps to facilitate a smooth departure while closing any financial obligations.

How to Do Your Tax Clearance

Notify Your Employer
- Inform your employer about your departure date as soon as it is confirmed.
- Your employer must submit the Notification of Employee’s Departure form (IR56G) to the Inland Revenue Department (IRD).
- IR56G includes income details from April 1st to your last working day.
- Your employer is legally required to withhold your final salary for one month until IRD issues a Letter of Release confirming all tax obligations are cleared.
Filing Your Final Tax Return

Wait for IRD to issue your last BIR60 tax return, or visit the IRD in person with your IR56G copy to process your tax clearance.
Ensure all outstanding taxes are paid before departing to avoid future complications.

Withdrawing Your MPF (Mandatory Provident Fund)

If you are permanently leaving Hong Kong, you may withdraw your MPF contributions.

MPF is a mandatory pension contribution deducted from your salary.
Required documents for MPF withdrawal include:
- Proof of departure from Hong Kong
- New overseas address and bank account details
- A statutory declaration confirming your departure (arranged through the Home Affairs Department).

Should You Close Your Bank Account?

Closing your Hong Kong bank account is optional, as non-residents can maintain accounts. However, consider:

Canceling direct debits and e-banking facilities to avoid unexpected charges.
Updating your registered address with the bank.

Can You Transfer Your Insurance?

Most insurance policies are non-transferable, meaning they need to be canceled before leaving.
Some insurance providers require a three-month notice period for policy cancellations.
Review your insurance contract terms before departing to avoid unnecessary premium payments.

Conclusion

Leaving Hong Kong requires a structured exit process, including tax clearance, MPF withdrawal, bank account updates, and insurance cancellations.

By notifying IRD, settling outstanding tax, and following financial procedures, you can ensure compliance and a hassle-free departure.

If you have specific questions or need assistance, contact us today!