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IR56B Complete Checklist: Key Fact to check Before You submit the Form
Filing of the IR56B form in Hong Kong is a very important employer’s tax obligation for any business owner. This one which declares the remuneration and benefits of employees to (IRD) has to be completed correctly with correct information. Moreover, you have to submit timely to ensure that the company complies with the local tax laws. Well, here is a complete checklist to assist you in this process.
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What is IR56B Form?
The IR56B form is about giving detailed information of each employer/directors’ income and benefits to IRD. It includes each employee’s personal information, position, salary and benefits.
Checklist on Consideration When Filing for the IR56B Form
1. Deadlines of Annual Submission
Employer should send IR56B form to the Inland Revenue Department before the 30th of April of the following year and it covers the period from April 1st of the previous year to March 31st of the current year.
2.Employer's Obligations for IR56B
It is essential for the employers to complete a new IR56B form for each employee, including those who quit the company during the year. It is also need to make sure that all the full legal names of the employees are on the list correctly. Moreover, employers have to provide the correct HongKong Identity Card or passport number for all employees on the list. You also need to add recent residential address of the particular employee.
3. Employment Details
When reporting the case, it is very crucial to indicate the specific job title/position of the particular employee in the organization. We also suggest employer to report employee’s spouse information.
4. Income and Benefits Reporting
Employers need to give the total number of salaries that was paid to the specific employee including the wages, bonus, and the commission. It must Include all the allowance that one is entitled to such as housing, travelling and meal expenses. The total reported remuneration must be before the deduction of the employee’s MPF contribution.
Submission Method for IR56B
There are two different types of submission: online mode and mixed mode.
Online Mode allows the Authorized Signer to complete the submission process online using his/her eTAX Password, MyGovHK Password, recognized personal digital certificate or “iAM Smart+” Account (with digital signing function) through the ER e-Filing Services.
Mixed Mode allows employer to designate a person to upload a data file through the ER e-Filing Services. After successful uploading of the data file, the 1-page (i.e. Cover Page) Control List (with Transaction Reference Number and QR code) will be generated from the system. The Authorized Signer needs to sign and submit the paper Control List to the IRD to complete the submission process.
Professional Consultation for IR56B
Handling the whole process for IR56B is absolutely a head-aching task when you also have to juggle other matters of the company operations. If you feel uncertain or overwhelmed in the middle of the IR56B form preparation, please make sure to contact us to make yourself at ease. Fastlane HR has A team of experts who can assist you so that you can keep the eye on your business.