Ricky Cheung

Notification of Remuneration Paid To Persons Other Than Employees


If a company pays commission, fees or other remuneration to persons other than its employees or to unincorporated businesses, such as:

(i) local persons (Form IR 56M and Form IR 6036B)

– subcontractors exceeding HK$200,000 per year;

– consultants, agents, brokers, freelance artistes, entertainers, sportsmen or writers etc. more than HK$25,000.

Guidance from the Inland Revenue Department: Notes on how to complete Form I.R. 56M

(ii) non-resident persons

Where payments are made to non-residents with a brief period of service in Hong Kong, the sponsor or agent has to:

– notify the IRD immediately when the non-resident arrives in Hong Kong; and

– withhold an amount from payments made to the non-resident sufficient to produce the amount of tax due in accordance with sections 20A and 20B of the Inland Revenue Ordinance.

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