The Company, as an employer, has statutory obligations to report remuneration paid to employees, directors, married persons and part-time employees; former employees and former directors who have realized gain by the exercise, assignment or release of any share option previously granted by the employer to the Inland Revenue Department (“the IRD”). In addition, the Company also has obligated to report renumeration paid to persons other than an employee to the IRD.

Failure to comply with the requirements specified under in Inland Revenue Ordinance (“IRO”), section 52(2) and (4) to (7), is a serious offence which carries penalty of a fine of HK$10,000 and the court may order the person convicted to do within a specified time the act which he has failed to do.

 

1. Keeping payroll records of all employees for at least 7 years

2. Reporting remuneration paid to an employee to the IRD

Employment condition

Form to complete

Reference in

Inland Revenue

Ordinance

(“IRO”)

Statutory period for notification

Commencement of employment

IR56E

section 52(4)

Within 3 months from date of commencement of employment

Still under employment as at 31 March

IR56B

section 52(2)

Within 1 month from the date of issuance of BIR56A

Cessation of employment

IR56F

section 52(5)

Not later than 1 month before cessation

Departure from Hong Kong

IR56G

sections 52(6) & 52(7)

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

3. Reporting remuneration paid to persons other than an employee to the IRD

Persons

Form to complete

Remarks

Local persons

IR56M together with the declaration form IR6036B

  • Sub-contractors exceeding HK$200,000 per annum
  • Consultants, agents, brokers, freelance artistes, entertainers, sportsmen, writers, freelance guides, etc. more than HK$25,000 per annum
Non-resident entertainers/ sportsmenIR623
  • Should complete Form IR623 immediately when the non-resident entertainer/ sportsman arrives in Hong Kong
  • Withhold an amount from payments made to the non-resident for tax clearance

Non-resident professionals

IR623P

Examples include non-resident individuals rendering services in Hong Kong as arbitrators, consultants, visiting counsel and lecturers

Our services include the followings:

  • Preparation and submission of annual Employer's Return for your employees to the IRD
  • Preparation and submission of various notification forms for your employees to the IRD

 

Speak with our payroll professionals
Feel free to get in touch to find out how we can help you with a tailored solution

Joseph Hong
Partner, Corporate Services
Email: [email protected] 

Speak to our Hong Kong Advisory specialists:

Joseph Hong
Partner, Payroll & HR Advisory