Tax Clearance

Posted by rubyred (474 days ago)

I'm leaving here after only six months. I've not earnt enough to have to pay any tax (I'm absolutely certain of that). Can I simply leave the country as I am or will I need to produce some kind of document at the airport to confirm this.

(I am based in Hong Kong)

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Posted by China Trader (474 days ago)

you can just leave

(I am based in Hong Kong)

Posted by rubyred (471 days ago)

Can anyone confirm China Trader's advice? I've somehow got the idea that you have to show a tax clearance certificate at the airport when leaving Hong Kong permanently. I have a work visa in my passport and a one way ticket so will I have any problems? Like I said, I'm sure I don't owe any tax but do I have to prove it? I've tried speaking to the Inland Revenue, but started digging myself into a hole. I had problems opening a bank account when I first got here and my employer paid me by cheque so I guess they didn't declare it. I'd feel much happier if someone else could confirm this. Thanks.

(I am based in Hong Kong)

Posted by happychick (471 days ago)

Have you spoken to your accounts department at your office? They have to fill out form IR56G to notify the Inland Revenue that you will be leaving the country. The form should also state how much you have earned to date and your accountant will be able to tell you if you need to pay tax. In many cases, if you are leaving the country soon,you will need to take the form yourself to IR and they will help you sort out your taxes. If I remember rightly and you do need to pay tax, you will need to pay there and then before leaving HK.

(I am based in Hong Kong)

Posted by Claire (471 days ago)

I think you are referring to the "Letter of Release".
http://www.ird.gov.hk/eng/pdf/ere_lore.pdf

'You or your employee is going to leave Hong Kong
What are you required to do under the tax law?'
http://www.ird.gov.hk/eng/pdf/pam46e.pdf

'Employee About to Leave Hong Kong
Tax Clearance – Things to be done / noted by Employer and Employee'
http://www.ird.gov.hk/eng/pdf/ir6158e.pdf

BTW, the personal allowance is $100,000 so tax would be due on anything earned over that amount.

(I am based in Unspecified)

Posted by rubyred (471 days ago)

I probably should have explained things better. I haven't worked for my employer for a while now so any kind of letter of release is completely irrelevant. I worked for them for some time before my work visa came through and they then continued to pay me by cheque so I don't think they're going to be too keen on declaring any of it. I didn't earn over $100,000, so I don't have to pay any tax and am not worried about this coming back to haunt me if I don't have the clearance certificate. I just want to know if anyone has ever heard of anyone being asked to produce this at the airport when leaving the country.

(I am based in Hong Kong)