According to the HK Inland Revenue Department (IRD), Hong Kong employers have to submit the correct year assessment of their employee’s salary tax between 1st – 31st April. In this article, we will summaries the common questions that we faced and provide the recommendations on how to handle the tax assessment as an employer.
Is director fee subject to Tax?
Regardless of company size or structure, every company registered in Hong Kong is required to prepare and file its employer’s return in Apr every year.
The company director is responsible to report all salaries and remuneration paid to an employee in the last financial years.
There is a common question about the reporting of director fee or director remuneration. Under the current salaries tax policy in Hong Kong, a director fee paid to director (regardless of resident status or location) is also subjected to the salaries tax in Hong Kong.
If the director is also entered into employment agreement with the company and receive remuneration (e.g. director fee) in the year then the director should also declare its total remuneration in the employer return of the year.
It is employer’s obligation to maintain proper payroll records of your employees and keep these records for at least 7 years.
Do I need to sum up the parttime staff, freelancers and terminated staff in my Employer’s Return?
The answer is YES. As a HK employer, you must submit the details paid of full time, parttime staff and freelancers who employed by your company to IRD.
For the terminated employee, you also need to file into your employer’s return. Therefore, we recommend that employer keep the related documents for record.
What Kind of Payroll Records I Need To Keep?
Your Tax Obligations is started when you hired the first employee in your company. As we mentioned in previous articles, having a well bookkeeping is the method to reduce the extra time on tax preparation. For your payroll records, it is suggested that to keep the person’s signed contract, employee’s and employer’s MPF contributions documents, Employee’s ID card. If your employee is hired from overseas company, employer could provide his/her passport number and place of issue instead. However, you should written inform to IRD immediately when your employee’s HKID is issued.
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關於董事費或董事酬金報告的常見問題。 根據香港現行的薪俸稅政策，付給董事的董事袍金（不論居民身分或身分）亦須在香港繳納薪俸稅，如果董事也與公司訂立僱傭協議並收取酬金 （例如，董事費），董事應在當年的雇主報稅表中申報其總薪酬。雇主有義務保留您僱員的工資記錄並保存至少7年。
尖沙咀商務中心擁有12年的經驗提供專業的會計和審計服務。 尋找專業的會計顧問？ 請隨時通過[email protected] / Whatsapp給我們+852 9168 9205。