Generate IR56M Batch

Generate IR56M Batch is under Taxation Menu.

This screen allows you to generating the IR56M tax form required by the Hong Kong Inland Revenue Department (IRD) for reporting payments made to non-employee local individuals, including freelancers, consultants, agents, and subcontractors. This form is distinct from forms used for regular employees and is necessary if your organization has paid such individuals above set thresholds during the tax year.

IR56M Batch No.: This is a user-definable key (up to 20 characters) used to identify the IR56M batch. The default batch name format is IR56M_yyyy, where “yyyy represents the taxation year. You may customize batch names to suit different IR56M batches for your company.

Employer: If your database holds multiple employer records, select the specific employer to generate that employer’s IR56M batch.

Taxation Period: Allows users to specify the relevant tax year (e.g., 2024/04 - 2025/03).

Type of Form:

There are four types:

• Original (“O”): for reporting remuneration of a recipient in the annual submission.

• Additional (“A”): for reporting additional remuneration of a recipient that has not been included in the form previously submitted (either paper or electronic) 

• Replacement (“R”): for correcting errors of the form previously submitted (either paper or electronic) 

• Supplementary (“S”): for reporting the income of a recipient that has not been reported in the annual submission.

Employee Selection (Non-Employee:

Displays non-employee individuals who:

• Are marked as Hong Kong Income Tax Taxable in Employee Master (IR tab).

• Are flagged as Non-Employee for IR56M in Employee Master (IR tab).

• Non-employees are not terminated or terminated within the taxation year.

• Applies income thresholds:

  • HK$200,000 for subcontractor fees, or

  • HK$25,000 for commission, writer’s/contributor’s fees, artiste’s fees, royalties, consultancy, management, other income

• Thresholds can be overridden based on the Taxation Module Setup.

Have taxable income above zero (unless the check-box option "Allows creating zero amount IR forms even if the payroll amount is zero" in Taxation Module Setup is turned on)..

Start IR56M Generation

• • Initiates form generation for eligible non-employees.

  • Accumulates taxable income for the specified period.

  • Requires payroll batches for April–March to be posted for proper calculation.

IR56M Amendment

After the batch is generated, amendments can be made to the IR56M records if further adjustments are needed.

Form Accumulation

- By default, IR56M forms are generated per employee number per sheet. If "Accumulate IR56 Forms by HKID" is checked in the Taxation Module Setup, all records with the same HKID are merged as required.

Summary:

The Generate IR56M Batch tool in HRPro automates and manages tax reporting for payments to eligible non-employees, supporting multiple employers, tax years, income thresholds, form types, and amendments—ensuring compliance and streamlined submissions to the IRD. It provides customization, accuracy, and flexibility for handling remuneration reports for contractors, freelancers, and other non-payroll service providers as required by Hong Kong law.