Tax
Reporting 
Use
Retroactive Accounting across Two Tax Periods
A payroll run in the current tax year includes retroactive accounting for amounts that occur during the previous tax year. The system determines in which tax year the retroactive amounts will be accounted depending on the following criteria:
- If the IR56B tax form has not been generated, the retroactive amounts will be reported in the previous tax year.
- If the IR56B tax form has already been generated, the retroactive amounts will be reported in the current tax year.
Changes to the Tax Forms
New Diskette format for IR56B Tax Form
The Inland Revenue Department has changed the format for submitting diskette files for an employee's IR56B Tax Form.
The new format also requires a breakdown of the "Other Rewards, Allowances or Perquisites" field into three separate entries. We have created three additional wage types (/147, /148 and /149) that will store these three fields. By assigning a reward, allowance or perquisites to cumulaton class 47, 48 or 49, the system will sum up the amount in wage type /147, /148 or /149 respectively. The system then uses these three wage types to report the breakdown to the three "Other Rewards, Allowances or Perquisites" fields.
Year Format for all tax forms
To comply with new legal changes, the year format for all tax reports has been changed from two-digits to four-digits.
Effects on Customizing
To set up the system to report an employee's
"Other Rewards, Allowances or Perquisites", go to Payroll Hong Kong
-> Tax -> Tax Reports -> 
Set
Up Other Rewards Fields in IR56B Tax Form.