The Employer’s Return is filed annually via Form BIR56A with one IR56B for each reportable person. The Inland Revenue Department issues BIR56A on or about 1 April each year, and it is due within 1 month of issue.
IR56B is required for employees whose total income exceeds the Basic Allowance for the year (HK$132,000 for 2024/25), and also for directors, married persons, and part-time employees likely to have other chargeable income regardless of amount.
Storage devices are no longer accepted for IR56 e-files. Use the Employer’s Return e-Filing Services (Online or Mixed Mode). Mixed Mode requires a signed Control List.
If your Hong Kong company has employees, you’re required to file an Employer’s Return each year with the Inland Revenue Department (IRD).
This includes Form BIR56A and one IR56B per reportable person. Below, you’ll find what to file, who to include, when it’s due, and the cleanest way to submit it.
What is Employer’s Return in Hong Kong?
The Employer’s Return of Remuneration and Pensions covers salaries, benefits, and pensions paid during the year from 1st April to 31st March.
Meanwhile, the IRD issues BIR56A around 1st April, and the return is due within 1 month of issue.
If you receive BIR56A but have nobody to report, tick “NO” and still submit BIR56A.
Even if you have no employees or your business has ceased, you should still return the BIR56A as instructed.
Who is an Employee for Employer’s Return?
For Inland Revenue Department (IRD) purposes, “employee” includes:
- Anyone you engage, whether resident or non-resident, in Hong Kong or overseas.
- Directors, married persons, part-time staff, and seconded employees assigned by non-Hong Kong entities.
What Are Your Tax Obligations As an Employer?
The tax obligations start when you hire your first employee.
Keep employee particulars, nature of employment, cash and non-cash remuneration, and employer and employee Mandatory Provident Fund (MPF) contributions.
Maintain payroll records for at least 7 years. Notify the IRD of changes to personal particulars or terms of employment.
What is the IR56B Form?
IR56B reports each person’s income and benefits for the year of assessment. You must file IR56B for:
- Employees whose total income exceeds the Basic Allowance (HK$132,000 for 2024/25; pro-rated if employed for part of the year).
- Directors, married persons, and part-time employees likely to have other chargeable income—regardless of amount.
- Employees of non-Hong Kong entities seconded or assigned to you, for duties in or outside Hong Kong.
- Pensioners paid or accrued a pension by you (with a Basic Allowance test if they have left Hong Kong permanently).
Do NOT file IR56B again for an employee if you already filed IR56F or IR56G for that same year.
Filing Employer’s Return Forms
The IRD issues BIR56A on or about the 1st of April. Submit within 1 month of issue with the required IR56 forms.
If you did not receive BIR56A by mid-April, request a duplicate via the IRD’s online portal, eTAX, or the Fax-A-Form service.
Form BIR56A
BIR56A is the cover return. Indicate YES/NO for persons to report, the number of paper IR56B you will submit, and the number of IR56B records uploaded via Mixed Mode.
The same Authorized Signer must sign BIR56A and all paper IR56B forms. For a corporation, an Authorized Signer may be a director, company secretary, manager, or precedent partner.
Form IR56B
Report personal particulars, designation, and all income and benefits. Typical items include:
- Salary,
- Bonus,
- Commission,
- Allowances,
- Value of housing,
- Stock awards and share options,
- Back pay,
- Gratuities and tips,
- Employer-paid tax,
- Holiday journey benefits, and
- Certain retirement scheme payments.
Payment in lieu of notice (PILON) accruing on or after 1 April 2012 is taxable and must be reported.
Freelancers and Form IR56M
File IR56M + IR6036B for payments to local persons who are not your employees when the yearly amounts exceed HK$25,000 for consultants/agents/freelancers or HK$200,000 for sub-contractors.
These thresholds apply to the year of assessment (1 April to 31 March).
Provide a copy of IR56M to the recipient to help with their tax return.
Deadlines for Employer’s Return Hong Kong
Annual filing is triggered when BIR56A is issued. Key deadlines are below.
| Filing Requirement | Trigger/Event | Deadline | Notes |
|---|---|---|---|
| Annual BIR56A + IR56B | Forms issued (around 1 April) | Within 1 month of issue | Request duplicate if not received by mid-April. |
| IR56E (new hire) | Hire a new employee | Within 3 months | File even if you also file IR56B at year-end. |
| IR56F (cessation/death) | Employee leaves or passes away | Not later than 1 month before cessation | Do not also file IR56B for the same income. |
| IR56G (leaving HK) | Employee leaves Hong Kong permanently | At least 1 month before departure | Withhold money for tax clearance. Do not also file IR56B for the cessation year. |
You may apply in writing for more time to submit the annual BIR56A if needed.
What's the Process of Filing?
Below are the submission options. Choose one to suit your headcount and workflow.
How to File the Employer’s Return Through Paper Filing
- Download BIR56A and IR56B from the IRD website or use Fax-A-Form.
- Complete BIR56A. If filing Mixed Mode, state the number of IR56B records uploaded.
- Obtain wet-ink signatures from the correct authorized signer (e.g., director, proprietor, precedent partner, company secretary, manager).
- Submit BIR56A + paper IR56B together. Original signatures required. Photocopies/faxes/scans are not accepted.
How to File the Employer’s Return Electronically
Use eTAX via the Employer’s Return e-Filing Services.
You can file BIR56A/IR56B, IR56E/F/G, and IR6036B/IR56M online.
Storage devices are not accepted for IR56B submissions.
Mixed Mode Filing
A designated person uploads the IR56 data file without the Authorized Signer’s login.
The system generates a Control List with Transaction Reference Number and QR code.
Further, the Authorized Signer (director, company secretary, manager, or precedent partner) must sign the Control List cover page and submit it (with BIR56A for annual IR56B/M).
From 1st of April 2024, IRD ceased accepting IR56B via removable storage devices. Submit IR56B records only through the ER e-Filing Services.
Penalties for Non-compliance With Filing Requirements
The IRD may prosecute, assess additional tax, and impose fines for non-compliance. The IRD states that heavy penalties can be incurred for failing to file or for incorrect returns.
Key Considerations for Employers When Filing the Employer’s Return
Employers must accurately report chargeable income when filing Form IR56B as part of the Employer’s Return. Chargeable income refers to any earnings that are taxable under Hong Kong Salaries Tax. Misreporting or omitting taxable income may result in penalties or compliance issues.
What Needs to Be Reported in Form IR56B?
Include all chargeable income, such as:
- Salary, wages, director’s fees, commissions, bonuses, leave pay, gratuities, payments in lieu of notice (for sums accruing on or after 1 April 2012), tips, and employer-paid tax
- Allowances and perquisites (for example housing and holiday journey benefits)
- Stock awards and share options
- Pension payments and specific amounts from retirement schemes
- Income paid by a non-Hong Kong entity to or for the employee
Common Mistakes to Avoid
- Underreporting benefits like housing or stock awards/options
- Reporting net pay instead of gross income
- Filing IR56B after you already filed IR56F or IR56G for the same income
- Late submission of BIR56A or notifications
- Not giving a copy of the filed IR56 form to the person concerned
- Poor record-keeping. Keep payroll and business records for at least 7 years.
Conclusion
Filing the Employer’s Return in Hong Kong is straightforward once you know who to report, what to report, and when forms are due. Use e-Filing for efficiency, set reminders for IR56E/F/G, and maintain 7-year payroll records to stay compliant.
Still unsure about the process or don’t have time to handle it yourself? Our team at Air Corporate is here to help — from preparing your IR56B forms to submitting your return on time, we’ve got you covered.
FAQs
To report each reportable person’s chargeable income and employment details to the IRD for the year.
IR56B reports individual income details. BIR56A is the annual summary/cover that must be submitted with IR56B.
It is the annual BIR56A with supporting IR56B forms reporting remuneration and pensions paid in the year 1 April to 31 March.
Yes. Directors are reportable persons and should be included on IR56B (regardless of the amount paid if likely to have other chargeable income).
Use eTAX to file BIR56A/IR56B online, or submit paper forms. If using Mixed Mode, the Control List must be signed and sent to complete submission. No storage devices for IR56B from 1 April 2024.
