Hong Kong companies are required to submit Form IR56B reporting employees’ remuneration, but for payment of non-employees for its services, it has to furnish IR56M for such kind of remuneration. For Hong Kong companies, other than those remuneration paid to employees, there are, such as:-
- Subcontractors
- Consultant
- Agent
- Brokerage
- Contributing artists, entertainers, athletes, writers
These people do not belong to employees and they should submit IR6036B (IR6036B Model Form) and IR56M (IR56M Model Form).
Notes to the (IR56M Form Notes) and the declaration form to the (IR6036C) Form) which are used for declaring the remuneration to be paid. In addition, you are also required to have a copy of the Form IR56M declaration to be issued to the person concerned to facilitate them properly on declaration the tax return for the service payment they charge.
There is a certain guidelines formulated by reporting to the IRD deciding on how much amount you need to apply or reporting, and for the name of the persons providing services compensation fund. According to the existing guidelines, the Hong Kong company must declare those paid to the persons who provide services remuneration amount for each year as follows:-
- Such as payment to subcontractors : more than $ 200,000 per year or
- Such as payment to consultants , agents , brokers, freelance artists, entertainers , athletes, writers, etc. : $ 25,000 per year over .