In Hong Kong, employers are required to file an employer’s return to report the total remuneration paid and tax deducted for each employee to the Inland Revenue Department (IRD). Here’s an overview of the process for handling the employer’s return in Hong Kong:
Understanding the Reporting Period
- The reporting period for the employer’s return in Hong Kong is typically the tax year, which runs from April 1st to March 31st of the following year.
Gathering Relevant Information
- Employers need to gather all relevant information related to the remuneration paid to employees, including salaries, wages, bonuses, commissions, and any other taxable benefits provided during the tax year.
Completing the Employer’s Return Form (IR56B)
- Employers must complete the employer’s return form, known as Form IR56B including detailed information such as employee’s wages, bonus, payment in lieu of notice (if any), and salaries tax paid by employer, etc.
Deadline for Filing
- The deadline for filing the employer’s return (Form IR56B) is typically in April following the end of the tax year.
Submitting the Employer’s Return to the IRD
- Once the employer’s return is completed, it should be submitted to the Inland Revenue Department (IRD) either electronically through the department’s online portal or in physical form, as per the IRD’s guidelines.
Compliance and Record-keeping
- Employers should maintain accurate records of the information provided in the employer’s return and associated documents for a specified period, as required by the IRD.
By following this process and fulfilling their tax obligations accurately and punctually, employers in Hong Kong can navigate the employer’s return filing requirements effectively and ensure compliance with the relevant tax laws and regulations.