Employer's Filing

Obligations of An Employer

 Statutory Obligations of An Employer to Report Remuneration Paid to an Employee

 Employment Condition


 Form to Complete

 Statutory Period for  Notification

 Reference in Inland  Revenue Ordinance


 Commencement of  employment


 Within 3 months

 Section 52(4)

 Both I.R.56E & I.R.56B are required for the  commencement year

 Still under employment as at  31  March


 Within 1 months

 Section 52(2)

 Must be submitted annually together with a  B.I.R.56A

 Cessation of employment



 Not later than 1 month  before cessation

 Section 52(5)

 I.R.56B for the cessation year is not required

 Departure from Hong Kong




 Not later than 1 month  before departure and  withhold money for tax  clearance

 Section 52(6) & 52(7)

 I.R.56B for the cessation year is not required

 Other Obligation

 I.R.56B should be filed for former employees who, after cessation of employment, exercised share options previously granted by the employer.

 Reporting Remuneration Paid to Persons Other Than an Employee

 Local persons (Form I.R.56M)

 If a company pays commission, fees or other remuneration to the following local individuals who are not the company’s employees or to unincorporated businesses:

 -  Sub-contractors exceeding HK$200,000 per annum

 -  Consultants, agents, brokers, freelance artistes, entertainers, sportmen or writers, etc. in excess of HK$25,000 per annum

 I.R.56M should be filed for each of these recipients together with the declaration form I.R.6036B.

 Non-resident persons (Form I.R623)

 Where payments are made to non-residents with a brief period of service in Hong Kong, the sponsor or agent has to comply with the following requirements:

 -  notify the Inland Revenue Department via I.R.623 immediately when the non-resident arrives in Hong Kong; and

 -  withhold an amount from payments made to the non-resident sufficient to produce the amount of tax due in accordance with sections 20A and 20B of the Inland Revenue    Ordinance and inform the Inland Revenue Department accordingly.

                                          Last Update: 30 June 2011