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Do I need to supply departing employer with contract for new company (IR56G/F)

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  1. #11

    I just changed the company and HR didn't asked any information about next company.

    In IR56F they just mentioned "To the best of my knowledge, this employee will not be moving out of Hong Kong".

    That's it!!

    Sith, shri and AsianXpat0 like this.

  2. #12

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    Let the HR of the previous employer go ahead to submit IR56G form. The impact to you is you are "assumed" to be departing HK, so you just need to make a trip to the HK tax office to settle up / pay up your taxes. How to do ? Read this link from the official tax website.

    https://www.ird.gov.hk/eng/tax/ind_twl.htm

    Since you are on GEP visa, and you do NOT want to give them your new contract (which is reasonable); then let them go ahead to "fulfil all the employer obligations"

    In this case, the HR are just sticking to the exact steps given by the tax office. If you intend to continue working in hong kong, then it will be useful for you to read up and fully understand how the HK Salaries Tax works. Go read up ... it is good for you.

    IR56F => if you have Permanent Resident HKID, the company would just fill it with your last working date and file it. But if you have GEP visa (work permit) then you fall into the category of IR56G.
    In IR56G, the employer is obligated by Taxation rules to hold your last salary until you get the "Letter of Release" from the Tax office. How to get? See:
    https://www.ird.gov.hk/eng/pdf/ir6158e.pdf

    Last edited by LifeInHK; 22-09-2022 at 09:05 PM. Reason: add Letter of Release

  3. #13

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    Quote Originally Posted by LifeInHK:
    IR56F => if you have Permanent Resident HKID, the company would just fill it with your last working date and file it. But if you have GEP visa (work permit) then you fall into the category of IR56G.
    This is false information (probably your opinion) and is not written in the document you've attached.
    Filing IR56F or G is based not on the visa status, but on the information employer received from the employee about his next plans.


    Quote Originally Posted by LifeInHK:
    Let the HR of the previous employer go ahead to submit IR56G form. The impact to you is you are "assumed" to be departing HK, so you just need to make a trip to the HK tax office to settle up / pay up your taxes.
    so the advice is instead of sending few emails to convince HR do the right thing, email nothing and use legs and your time to run around the city and sort out the mess HR created?

  4. #14

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    Is it my opinion? or simple case of true bureaucrat behaviour by HR covering their arse?
    Read the web page again..... there are two pdf files; the key is in the Q & A for "You or your employee is going to leave Hong Kong" and since the original poster mentioned they are holding GEP visa, the HR treats this resignation as equal to employee "leaving"; coz the company who is the sponsor for GEP visa is liable for taxation if the departing employee owes taxes. This liability is part of Salaries Tax.

    If that HR is any good, they will certainly file the IR56G and hold on to the last pay check. Trying to get them to change it to the IR56F would be waste of gas

    HR did not create any mess; HR is actually doing the RIGHT thing by the Salaries Tax of HK. They are just "follow the guideline" and being simple bureaucrat with tax office guidelines written 30 years ago.
    Whether it is false or true? Original poster.... you can decide for yourself.

    What the original poster needs to do is to just make one trip to the tax office to execute "tax clearance"; then his last month salary will be released; otherwise the previous company (ie HR) is on the hook for his taxes, which is why their HR is talking about holding on to his last pay check.

    Friends are owner of a company, their HR implemented this in 2022 due to many GEP visa holders either changing jobs and their taxes were left hanging in the air; and the tax office asked questions so it was a tough situation. Many friends chipped in to help them sort out that tax audit. FYI:

    Home > Tax Information - Individuals/Businesses > Employers > What tax obligation do I have as an Employer?
    (c)
    From the date of filing IR56G and until such time the employee has made tax clearance and can produce to you a " letter of release" issued by the IRD, you should withhold all amounts due to be paid to him (including salaries, commission, bonus, reimbursement of rent/expense, money or money's worth included).

    https://www.ird.gov.hk/eng/tax/ere_obl.htm

    Quote Originally Posted by GotIt:
    This is false information (probably your opinion) and is not written in the document you've attached.
    Filing IR56F or G is based not on the visa status, but on the information employer received from the employee about his next plans.

    so the advice is instead of sending few emails to convince HR do the right thing, email nothing and use legs and your time to run around the city and sort out the mess HR created?
    Last edited by LifeInHK; 22-09-2022 at 11:47 PM.
    shri likes this.

  5. #15

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    Quote Originally Posted by LifeInHK:
    company who is the sponsor for GEP visa is liable for taxation if the departing employee owes taxes. This liability is part of Salaries Tax.
    Can you provide any IRD regulations backing this statement? Company is required to withhold salary if she has information from employee that he's departing HK. That's it, regardless of his visa status. Even if he is PR but is saying he's going to UK for good, salary needs to be withheld.
    Everything else about "regulations" you've written again is not in any documents and I'm sure you won't find any proof for that.

    I know more than 1 HR happy with email statement from employee that he is not leaving HK. I wonder if your "friends HR" had these statements from people in writing, and if IRD has found that not sufficient? Or HR was keeping no records at all and was delaying IR56 for a while?

  6. #16

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    The IR56G form itself, item #14 and #15

    14. Whether the employee’s Salaries Tax will be borne by employer (Please ) □ Yes □ No
    15. Any money, including any money payable, held under section 52(7) of the Inland Revenue Ordinance (Please ) (This item must be completed)
    □ Yes, estimated amount HK$
    □ No, the reason is

    The HR needs to answer this when they do the filing ; which affects the calculation for final $$$ amount of taxes owed by both the Employer and Employee.

    Why make an estimation ? Just get that Letter of Release and this amount gets calculated by the Tax office (who are official authority anyway)and it becomes FINAL. Job done. Think like a bureaucrat.

    This calculation is most likely the reason why HR is forcing the poster to clear up taxes by getting that Letter of Release from tax office.

    As an aside, previously the HK government has been "lazy" with Salaries Tax; as they has so much $$ coming in from Properties Tax, but during these last two years, gov has spent more than they earned... so they are starting to enforce other tax revenues. Go look at the civil service jobs board.... the tax office is hiring contractors to help with auditing.

    https://www.ird.gov.hk/eng/pdf/ir56g.pdf

    Last edited by LifeInHK; 23-09-2022 at 12:11 AM.
    shri likes this.

  7. #17

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    Quote Originally Posted by LifeInHK:
    The IR56G form itself
    It seems you're illiterate. Before submitting the form, need to select correct version of the form, either F or G, and for that need to follow guidance.
    No.14 there just gives a choice to employer settle tax himself, if he elects to do so.

    However, if HR would be doing this route (IR56G when employee asks for IR56F), he would submit by himself deliberately false/made up by himself information in a number of points:
    1. >PARTICULARS OF EMPLOYEE WHO WILL BE LEAVING HONG KONG ON OR ABOUT _date_
    8. >Postal Address after departure (if different from item 7 above)
    16. > Reason for departure
    17. > Whether the employee would return to Hong Kong

    And all of this would be deliberately false.

    Another suggestion to employee if would be getting this form - send email/message to both HR and IRD, point that out (false information) and ask for revised form IR56F.




  8. #18

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    HR does NOT need your new contract to file IR56F. They are over-reaching. If I were in your place, I also would refuse to provide the contract.

    My estimate is that the alternative that HR has is to file IR56G; and for this type of tax filing, the HR can hold your last paycheck until you (employee) gives the "Letter of Release" from the IRD (tax office). The best people to ask this is any friend who works as a CPA or payroll staff.

    Quote Originally Posted by O_O:
    Hi again, I told HR that I couldn't provide them with the new contract and now they are witholding my final paycheck until I do... What is the best place to get official advice on this? The HK Labour hotline? 2717 177

  9. #19

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    This is what the guidance note says.

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    After filing the G form they can only withhold for a month according to the guidance notes.


  10. #20

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    thank you for all the replies. A lot of back and forth between different people with differing opinions so i'm not sure I follow exactly. But my situation now is that i've received my approved visa transfer. I still have 1 week left in my current job and HR are still refusing to give me the correct form for tax clearance. They've actually stopped responding to my calls and emails now, feel like i'm dealing with a 15 year old girl rather than the HR of a large company...

    Any advice on what I should do, they've given me a 56G form (leaving HK) despite my insistence that I am not leaving. If I take this to IRD and get the tax clearance will there be any negative consequences for me later on? I just want to get my final months salary. I offered to provide a letter from the company saying I will be workign there, also now I have the extended visa so can provide this as proof that I am staying. But HR won't even respond to my emails anymore... Current boss and managers couldn't care less either, tell me to sort it out with HR

    Last edited by O_O; 23-09-2022 at 06:01 PM.

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