Employers should pay attention to the tax season every April. In addition to filing the Employer’s Return, if you receive Form IR6036A (1) from the Inland Revenue Department, the company must also file IR6036B and IR56M to report remuneration paid to local non-employees, such as outsourced workers, agents, brokers, or consultants who are not employees but receive remuneration.
Further Reading: Employer’s Return | Employer’s Tax Obligations
What is Form IR56M?
IR56M is a notification of remuneration paid to persons other than employees. It is used to report remuneration paid to local non-corporate persons who are not employees. This means if the company has service fee expenses where the recipient is not an employee and not a limited company, the employer should file Form IR56M. Examples include: subcontractors, consultants, agents, real estate agents, freelance artists, athletes, writers, freelance tour guides, etc.
Further Reading: Tax Filing Guide for Self-Employed Persons
Information Required for Filing IR56M
1. Recipient Information
1.1 Recipient is a Business Operator (Sole Proprietorship or Partnership)
- Business Name
- Business Registration Number
- Business Address / Correspondence Address
1.2 Recipient is an Individual
- Full Name
- Hong Kong Identity Card Number
- Gender
- Residential Address / Correspondence Address
- Marital Status
2. Capacity of Service
The capacity in which the recipient provides services, e.g., contractor or consultant
3. Total Amount of Remuneration Paid
The total amount within the government fiscal year from April 1 to March 31. Taking the IR6036A received in 2025 as an example, this refers to the total remuneration paid from April 1, 2024, to March 31, 2025.
IR56M Filing Guide
Fill in the sheet number in sequence at the top right corner of Form IR56M. Below is a step-by-step guide for filling out IR56M:
Part 1 of Form IR56M: Payer Information
- The Employer’s File Number is the number in the top left corner of the Employer’s Return. If you do not have an Employer’s File Number, fill in the Business Registration Number.
- Name of Payer Company
- Address of Payer Company
Part 2 of Form IR56M: Recipient (Partnership Unlimited Company)
- If the recipient is a partnership unlimited company, fill in the company name and Business Registration Number in Point 2.
Part 3 of Form IR56M: Recipient (Sole Proprietorship Unlimited Company)
- If the recipient is a sole proprietorship unlimited company, fill in the company name and Business Registration Number in Point 3, and provide the recipient’s details including: Name, ID Number, Gender, and Marital Status.
Note: For the English name format of the recipient, for example: WONG TAI MAN should be filled as WONG, TAI MAN. The key is to include a “,” after the surname.
Part 4 of Form IR56M: Correspondence Address
- Fill in the correspondence address of the person or company receiving the non-employee remuneration.
Part 5 of Form IR56M: Capacity of Service
Fill in the recipient’s capacity of service, for example:
- Subcontractor: Electrical contractor or cleaning subcontractor
- Broker/Consultant: Real estate consultant or insurance broker
- Freelancer: Designer or computer programmer
Part 6 of Form IR56M: Period of Service
The total within the government fiscal year from April 1 to March 31. Taking the IR6036A received in 2025 as an example, if the recipient provided services all year round, the period of service is the total remuneration paid from April 1, 2024, to March 31, 2025.
Part 7 of Form IR56M: Total Amount and Type of Remuneration
Fill in the total remuneration according to the nature of the service.
Part 8 of Form IR56M: Tax Withheld
- If no remuneration was withheld for tax, fill in “0”.
- If remuneration was withheld for tax, fill in “1”.
Note: This section must be completed!
Part 9 of Form IR56M: Remarks
If there are any special matters that require remarks, they can be filled in at Point 9.
Form IR56M: Signature and Chop
Fill in the name, designation, and date of the signatory in the bottom right corner of the form, and apply the company chop in the bottom left corner.
What is IR6036B?
IR6036B is the form used to reply to the IR6036A letter from the Inland Revenue Department. If a company has paid service fees to persons other than employees, the company needs to submit the completed IR6036B form along with the IR56M forms to the IRD.
IR6036B Filing Guide
1. Payer Company Information
Fill in the Employer’s File Number (i.e., “Employer’s Return BIR56A Number” = File Number) and the company name.
2. Year and Date
Fill in the year of the 56M forms and the date the IR6036A letter was received.
3. Select IR6036B Form Options:
- Select Option 1: The company has paid service fees to local non-employees and is simultaneously filing paper returns for remuneration paid to local non-employees, and needs to specify the number of 56M forms submitted via CD-ROM/USB.
- Select Option 2: The company needs to file IR56M returns and needs to specify the number of 56M forms.
- Select Option 3: The company has not paid any remuneration to persons other than employees.
- Select Option 4: Although the company paid service fees to persons other than employees, the amount did not reach the requirements specified in IR6036C, i.e., broker commission over $25,000 or subcontracting fees over $200,000.
4. Signature
Fill in the name, designation, telephone number, and date of the signatory, and sign.
Common Questions on Filling IR6036B
1. How much service fee must a company/employer pay before needing to report remuneration paid to persons other than employees?
According to current guidelines, the annual amount of remuneration paid to service providers that a company must report is:
Paid to subcontractors: Over $200,000 per year
Paid as service fees/commissions: Over $25,000 per year
2. Can I ignore it if I receive IR6036A but haven't paid any remuneration to persons other than employees?
No. As long as you receive the IR6036A letter from the Inland Revenue Department, even if the company has not paid remuneration to local non-employees, the employer is responsible for completing and submitting Form IR6036B to the IRD by the deadline.
If the company has not paid remuneration to non-employees, simply follow the IR6036B filing guide above to select the third or fourth option, fill in the signatory’s details, sign, and return it to the IRD.
3. What are the consequences of late submission of IR56M?
Based on past experience, if Form 56M is submitted late or not at all, the Inland Revenue Department will send a letter to the company address requesting the “Notification of Remuneration Paid to Persons Other Than Employees” be returned as soon as possible within a specified date. If there is still no reply to the IRD within the deadline, first-time offenders are generally fined $1,200, while the maximum penalty is a fine of $10,000 (3).
Note: The IRD may issue a penalty notice directly without sending a reminder letter for the late submission of IR56M.
IR56M Precautions
IR56M Form Deadline
Within one month of the issuance of Form IR6036A. For example, if the issuance date is April 1, 2025, the deadline for submitting 56M is April 30, 2025.
Make 2 Photocopies for Records
One copy serves as the company’s tax expenditure voucher, and the other is given to the recipient as their personal tax income voucher.
Number of IR56M Forms
The page numbers in the top right corner of the forms should start from “900001”.
Download Links for IR56M and IR6036B
Frequently Asked Questions
Q: When should Form IR56M be submitted?
A: It must be returned to the Inland Revenue Department within one month of receiving Form IR6036A.
Q: Does the Inland Revenue Department always issue IR6036A in April each year?
A: Not necessarily. While the IRD mostly issues IR6036A in April, they can issue Forms 6036B and 56M at any time.
Q: Do I need to provide Form IR56M to the accountant for tax filing?
A: Yes, Forms 6036B and 56M can be used to prove subcontracting or commission expenses and are required documents for company tax filing.
Q: What is IR6036C?
Conclusion
The above is the filing guide, download links, and precautions for IR56M and IR6036B. April is the tax season each year. In addition to filing the Employer’s Return, if an employer receives Form IR6036A from the Inland Revenue Department, they must reply to the IRD using IR6036B, regardless of whether remuneration was paid to local non-employees.
If the company has paid service fees to subcontractors, consultants, or brokers, etc., in addition to IR6036B, a separate IR56M form must be filed for each non-employee. After receiving IR6036A, employers must submit the relevant forms within one month; otherwise, they may face fines of up to $10,000. Therefore, it should be handled promptly to ensure employer tax compliance!
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