What Is Form IR56E?
If you are a business owner operating in and out of Hong Kong, it is essential that you learn what Form IR56E is, and why it must be filed. The Inland Revenue Department (IRD) requires that all incorporated businesses prepare and submit a Form IR56E anytime they hire a new employee to join their company or firm.
Form IR56E is an employer-obligated form that must be completed and submitted within a particular time frame to avoid penalty. The Inland Revenue Ordinance requires that employers complete and submit their Form IR56E for all employees, or face legal litigation or penalties in accordance with section 80(1) of the IRO.
What You Will Learn:
- What Is Included On A Form IR56E?
- When Must I Submit Form IR56E?
- Do I Need To Complete Form IR56E For Freelancers & Contractors?
- What If I Have Changes To Make For Form IR56E?
- Helpful Links Regarding Form IR56E For Hong Kong Employers
- Let Fastlane Help You With Your Form IR56E Needs
1. What Is Included On A Form IR56E?
The standard Form IR56E will include a variety of data on a new hire, including:
Ensuring that you have an accurate and complete way to collect and submit this information with a standardized form and system will be vital to help you keep accurate records of all employees when they begin.
Click here to view the form in PDF format.
Click here to see an example of a completed IR56E form for reference.
- Employer’s File Number
- HKIC No.
- Marital Status
- Date of Commencement of Employment
- Monthly Rate of Fixed Income
- Place of Residence Indicator
- Non-Hong Kong Income Indicator
2. When Must I Submit Form IR56E?
Form IR56E must be completed and submitted to the IRD within the first three months of a new employee’s hiring.
It is important to note if the employee will be charged under the Salaries Tax as part of their employment, as this will require you to complete and file Form IR56E for that staff member.
Form IR56E is a required form for the commencement year.
3. Do I Need To Complete Form IR56E For Freelancers & Contractors?
A common question regarding Form IR56E is whether or not employers must file one for contracted workers or freelancers.
The IRD has a separate form – Form IR56M – that tracks data on non-employee paid individuals. For those who are not employees that are charged under the Salaries Tax, the company will not be required to file and submit a Form IR56E.
4. What If I Have Changes To Make For Form IR56E?
If you find that you need to make changes or amendments to any information reported on a Form IR56E, you can create and submit a replacement form. Include in the replacement form the updated or corrected information, along with the date that the new information is being submitted. This will ensure that all documentation with Form IR56E is accurately completed.
5. Helpful Links Regarding Form IR56E For Hong Kong Employers
The IRD maintains plenty of helpful information to help employers learn more about the Form IR56E and filing process. To learn more about Form IR56E, click any of the links below to visit the IRD HK website:
6. Let Fastlane Help You With Your Form IR56E Needs
Ensuring that you are completing all Form IR56E information for current and new employees is a vital step in helping your Hong Kong business flourish. Failing to file the accurate information on time can leave you with outdated information and potentially costly fees and penalties.
If you are looking for help in preparing your Form IR56E and other Hong Kong business forms, Fastlane is ready to help your business bring together the necessary information to track all of your employees with an innovative financial payroll service. Our team will work closely with your business to collect all necessary information and documentation and prepare all files to be submitted to the IRD for proper accounting.
Contact Fastlane today to learn more about how to prepare all of your necessary documentation – including Form IR56E – today! Click here to check out the other forms FastLane can help you with!