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.