What is IR56M?
IR56M form is a notice for payment of remuneration to persons other than employees.
IR56M form template
Please refer to the IR56F form in English download link.
Why is IR56M important?
Hong Kong companies are required to submit IR56B form to declare employee remuneration, but for the remuneration received by local people who provide services to the company and do not operate business in the form of a corporation, IR56M should be filled in. It is the obligation of the employer and the employee to fill out the IR56M form. To provide accurate data for the IRS to calculate salaries tax for persons other than employees.
Notice of IR56M tax return
Hong Kong companies are required to pay remuneration to local non-employees. IR56M form should be submitted for the following local persons: consultants, agents, brokers, freelance artists, entertainers, sportsmen, writers, etc. In addition, IR56M requires a copy of the declared form to be sent to the relevant person so that they can correctly report the service payment they received on the tax return. The employer not only needs to calculate the trivial payment but also needs to analyze what is calculated tax part.
Workstem one-stop cloud & human resources management platform includes a complete tax reporting function. It not only helps you record employees’ join dates, payroll information, payroll history records, MPF contribution records, etc. but also customizes each income. Add items/decrease items, and put them under different taxation rules. When the tax filing season comes, Workstem will help you generate and export the IR56M of all employees with one click, and you can also choose XML or PDF format to make it easy for you to complete tax returns. Amazing!