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Tax information: Leaving Hong Kong
Welcome to your tax guide on leaving Hong Kong, produced for you by Deloitte. For tax information about going to Hong Kong, Click here
The information is provided by Deloitte in accordance with their terms and conditions. HSBC does not accept any responsibility for the accuracy of this information.
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Click the 'plus' symbol or text for more information.
Before/once you departQ. Should I complete any documentation prior to leaving Hong Kong?
A. Where an employee is leaving Hong Kong permanently, the employer must file Form IR56G (Notification of Departure from Hong Kong) one month before departure, and the employer should withhold all payments to or on behalf of the employee for a period of one month from the date on which the employer gives notice to the IRD or until the IRD notifies the employer that it is permissible to do so.
The individual's final Hong Kong tax return should also be filed, and the tax liability paid, prior to departure at which point a letter of release will be issued by the IRD and any monies withheld can then be paid.
Q. Should I open an offshore bank account?
A. Offshore accounts do not provide tax benefits for Hong Kong purposes, however it may be advisable to open an offshore account in order to benefit from tax reliefs in the country that you are going to.
Q. Will I be regarded as not resident in Hong Kong during my period overseas?
A. Due to the territorial system of taxation in Hong Kong, there is generally no concept of residence or non-residence.
Q. Will I still need to complete a Hong Kong tax return after my departure?
A. To the extent that an individual continues to have Hong Kong source income after departure, there will be a continuing filing obligation in Hong Kong. This could apply in respect of property or business income from a Hong Kong source, or income arising after departure but in respect of services rendered in Hong Kong prior to departure (for example stock option income or post departure bonuses).
Q. Will I have to pay Hong Kong tax in respect of the employment income I will earn overseas?
A. If you are leaving Hong Kong to work overseas for a non-Hong Kong employer those duties will not be taxable in Hong Kong. You will only be taxable in Hong Kong if you have duties there for a Hong Kong employer, or if you visit Hong Kong more than 60 days a year for an overseas employer.
If you hold a Hong Kong employment, there is a potential exposure to double tax. Under domestic legislation, however, an exemption is available in respect of such remuneration where it has been subject to tax of a substantially similar nature to Hong Kong salaries tax in the territory where the relevant services were rendered .
Q. Will I have to pay tax in respect of Hong Kong investment income earned while overseas?
A. Hong Kong does not charge income tax in respect of interest and dividends, although property tax is charged on the net assessable value of land, buildings, and other structures.
Q. I plan to sell my Hong Kong property while overseas. Are there any capital gains tax implications?
A. Hong Kong does not impose capital gains tax, but you should confirm whether any tax implications exist in respect of the country that you are going to.
Q. I have a number of Hong Kong company shares. Will I remain liable to capital gains tax if I sell any of these while outside Hong Kong?
A. Hong Kong does not impose capital gains tax, but you should confirm whether any tax implications exist in respect of the country that you are going to.
Q. What Social Security contributions will I pay when abroad?
A. As long as you and your local employer in Hong Kong are engaged in an employment contract under the jurisdiction of Hong Kong Employment Ordinance, your employer is required to enrol you in an MPF scheme regardless of the location of your work.
As Hong Kong has not entered into any social security agreements with other countries, you will also be required to pay social security contributions in the country that you are going to.
This document has been prepared based on the legislation and practices of the country concerned as at 01 July 2007. Income tax legislation and administrative practices may change, and this document should be regarded as a summary guide rather than as a substitute for consultation with your appropriate in-country tax contact.
The information is provided by Deloitte in accordance with their terms and conditions. HSBC does not accept any responsibility for the information contained therein
To view Deloitte terms and conditions in relation to the provision of this tax information you can download it here .
