The Hong Kong Inland Revenue Ordinance provides that any person is chargeable to tax and intends to leave Hong Kong for any period exceeding 1 month due to emigration, study or work abroad shall notify the Hong Kong Inland Revenue Department (“IRD”) at least 1 month before the expected date of departure, except the employees who frequently travel in the course of their employments.  The following are the frequently asked questions regarding tax clearance to be done by an employee about to leave Hong Kong:

Q:	As an employee, how should I notify IRD of my departure?
A:	You may notify IRD of your intended departure from Hong Kong by phone or by writing a letter and sending it to them by email/fax/postal mail.
Q:	What are the next procedures after the notification?
A:	IRD will issue a tax return to you upon receiving your notification. You should complete and submit the return to IRD within the specified period together with supporting documents. If it is impracticable for IRD to issue a tax return, an estimated assessment will be raised instead based on available information. Further, you should settle and pay your tax liability before leaving Hong Kong.
Q:	How do I know if the tax clearance procedure has been completed?
A:	IRD will issue a “Letter of Release” after you have settled your tax liability. Even if you are exempt from tax, IRD will still issue that letter upon completion of the tax clearance procedures.
Q:	I have cleared my tax before departing Hong Kong, but my employer informs me that additional remuneration will be paid to me. What should I do?
A:	You will have to go through the tax clearance process again if you are entitled to additional remunerations which will give rise to further salaries tax liabilities after tax clearance. You should provide to IRD your latest overseas correspondence address.
Q:	If I exercise the share option which my ex-employer has previously granted me after my departure from Hong Kong. Do I have to pay Hong Kong tax on the share option gain?
A:	Yes, you do. You have to report such share option gain to IRD and its chargeable to salaries tax even after your departure.