Employer Obligation

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FAQ > Employer Obligation > G01

Q: If assigning employee to work overseas or to work in Hong Kong, what tax obligation do I have as an Employer? View : 67

According to Hong Kong taxation. employee assigned to work overseas or to work in Hong Kong Company carrying on business in Hong Kong is obliged to file Form IR56B for all its employees, irrespective whether the employee rendered services in or outside Hong Kong, so long as their total income exceeded the limit as laid down in Note 1(a) of Notes and Instructions for forms BIR56A and IR56B. You may provide additional information in the remarks column (item 14 of the Form IR56B); e.g. the employee stationed in the Beijing office and had visited Hong Kong for less than a total of 60 days during the relevant year of assessment.

Based on the Hong Kong Taxtation, where an employee of a company is partly paid by an overseas subsidiary because of the services rendered outside Hong Kong for that subsidiary, the Hong Kong company should report in item 11 of the Form IR56B the aggregate amount of income paid by the Hong Kong company and the overseas subsidiary. In addition, the amount paid by the overseas subsidiary should be stated again in item 13 in Form IR56B. An employer should report the full remuneration accrued to an employee irrespective of whether the respective employee is entitled to claim exemption from Salaries Tax or not. An employee who wish to claim full / partial exemption of income or relief, may lodge his claim in his Tax Return- Individuals.

Sometimes a person may be assigned or seconded to the Hong Kong office by the overseas parent company. The employer to be named in item 1 of Form IR56B will be the Hong Kong company.

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