As a non-resident working in Hong Kong, you are liable to salaries tax. This article will give you details on chargeable and non-chargeable income, and tax clearance when leaving Hong Kong.

If you receive a tax return from the Inland Revenue Department (IRD), you must complete and submit it by the due date for filing.

Please note that not all income is chargeable; but you need to report the following incomes in your tax return:

• salaries, wages, fees and director's fees
• commissions, bonuses, leave pay and gratuities
• allowances, perquisites and fringe benefits
• tips from any person
• salary tax paid by your employer
• value of a place of residence provided by your employer or an associated corporation
• share awards and share options
• back pay, contract gratuities, deferred pay and pay in arrears
• termination payments and retirement benefits
• pensions

You are not required to report the following income:

• payment in lieu of notice
• severance payments and long service payments
• jury fees

• More on chargeable and non-chargeable income
  http://www.ird.gov.hk/eng/tax/ind_sal.htm#07

The Inland Revenue Ordinance (IRO) provides that any person chargeable to tax and intending to leave Hong Kong shall notify the IRD not later than 1 month before the expected date of departure. Upon receipt of the notification, the IRD will decide whether the person leaving is required to settle all tax liabilities prior to departure.

Failure to comply with such requirements by the individual may result in penal actions.

However, the IRO also provides that employees who travel frequently in the course of their employments do not have to notify their departure. They will file tax returns and pay taxes annually.

• More on tax clearance when leaving Hong Kong (pdf file)
  http://www.ird.gov.hk/eng/pdf/pam46e.pdf