Filing an employer’s return is a routine requirement for businesses in Hong Kong — but that doesn’t make it simple. Between various form types, submission deadlines, and employee reporting requirements, employers must follow specific procedures to remain compliant with the Inland Revenue Department (IRD).
From the BIR56A summary to the individual 56B form for each employee, filing your employer’s return of remuneration and pensions involves several moving parts. In this guide, we’ll walk you through what’s required, when to submit it, and how to manage your employer’s return without costly mistakes.
What Is the Hong Kong Employer’s Return?
The employer’s return is an annual declaration filed by employers in Hong Kong to report the total income, allowances, and benefits provided to their employees. It allows the IRD to assess each employee’s individual tax liability based on accurate employer-reported data.
Two key forms are involved here:
- BIR56A: a summary form completed by the employer
- IR56B: an individual income report completed for each employee
Key Employer’s Return Forms Explained
BIR56A
The BIR56A is issued by the IRD each year, typically in early April. This form serves as the employer’s cover sheet, confirming the number of employees being reported and verifying that the employer is fulfilling their tax reporting obligations. Even if your business didn’t pay any remuneration during the year, a BIR56A still needs to be filed.
IR56B
The IR56B must be completed for each employee who was employed during the relevant assessment year. This includes salaries, bonuses, housing allowances, and other taxable benefits. You can easily access and download the 56B form from the IRD’s official website.
Who Needs to Be Included in the Filing?
Employers are required to submit 56B forms for all employees who received income in Hong Kong during the year, regardless of whether they were full-time, part-time, or contract-based. This also includes directors, company founders receiving salaries, and employees who resigned during the year.
Even if an employee worked only part of the year, an IR56B still needs to be submitted if they earned any assessable income during that period.
When to File the Employer’s Return in Hong Kong
The IRD generally issues the BIR56A around 1 April each year. Employers are required to submit the complete employer’s return, including all accompanying 56B forms, within one month from the date of issue.
If more time is required, employers may apply for an extension through the IRD’s website or by written request. However, extensions are not always guaranteed, especially for smaller businesses.
How to File the Employer’s Return
There are three main ways to file your employer’s return in Hong Kong: by paper, online via eTAX, or a combination of both. The right option often depends on your company’s setup and payroll tools.
Paper Filing
Traditional filing starts with a download of the 56B form, which is then completed manually, along with the BIR56A. Once filled out, these forms can be submitted by mail or in person to the IRD. You’ll need to print separate 56B tax forms for each reportable employee.
Electronic Filing via eTAX
Employers can use the eTAX portal to complete and submit their employer’s return online. The system allows both the BIR56A and IR56B forms to be submitted digitally. Employers must register for eTAX access and may need a digital certificate or login credentials to authenticate their submission.
Mixed-Mode Filing
For employers using HR software that generates 56B forms, a hybrid approach may be used: submitting the IR56B forms electronically while filing the BIR56A in hard copy. This is commonly used by businesses with third-party payroll providers.
Common Employer’s Return Errors to Watch Out For
Incorrect or incomplete filing of your employer’s return can result in penalties, employee tax issues, or unnecessary follow-ups from the IRD. Below are some common mistakes worth avoiding:
- Reporting incorrect salary or bonus figures: This can affect employees’ personal tax assessments and lead to IRD discrepancies.
- Omitting employees who resigned mid-year: Even short-term or resigned staff must be included if they received income.
- Using outdated versions of the 56B form: The IRD updates forms regularly, so always use the latest downloadable version.
- Submitting late without an approved extension: Returns must be filed within one month unless a formal extension has been granted.
- Failing to declare benefits-in-kind like housing or allowances: Non-cash compensation is still taxable and must be reported in the IR56B.
Key Documents to Complete the Employer’s Return
To file your employer’s return correctly and on time, you’ll need to prepare a few essential records in advance. These documents support accurate reporting across all 56B forms and the BIR56A.
- Signed employment contracts: Use these to verify job titles, employment dates, and agreed remuneration.
- Payroll records and MPF contributions: These provide monthly breakdowns of income and statutory payments.
- Bank transfer records for salaries and reimbursements: Confirm that reported amounts were actually paid to the employee.
- Bonus and commission statements: Include all discretionary and contractual payments made during the year.
- Taxable benefit breakdowns: Declare non-cash items like housing, allowances, or stock options reported in the 56B tax form.
Record-Keeping Duties for the Employer’s Return
After submitting your employer’s return, the work doesn’t end there. Under Hong Kong tax law, employers are required to keep all related records, including submitted forms and supporting documents, for at least seven years.
This retention period applies even if an employee leaves the company or if no remuneration was paid in a given year. The IRD may request these records during audits or compliance checks, especially if any discrepancies arise between employer and employee filings.
Records that support your BIR56A and 56B forms, such as pay slips, benefit calculations, and MPF contribution proof, should be stored in a secure and accessible format. Keeping everything organised not only meets statutory requirements but also protects your business from unnecessary penalties or disputes down the line.
Get Employer's Return Filing Right from the Start
More than just meeting a deadline, filing your employer’s return of remuneration and pensions is about making sure every reported figure reflects the reality of your business. Missteps in your BIR56A or 56B form can affect not just your compliance, but your employees’ tax filings, too.
NOVA provides expert support in preparing payroll data and helping you complete your employer’s return with confidence. In addition to payroll and compliance guidance, we also offer audit and tax filing services to help businesses stay on top of broader reporting obligations throughout the year. With our specialists by your side, your filing process will be managed with clarity, timeliness, and care.
FAQs
1. Can I file the employer’s return of remuneration and pensions if I have no employees?
Yes, even if your company has no employees, you must still submit the BIR56A forms and indicate that no remuneration was paid during the reporting period.
2. Is there a penalty for submitting the 56B tax form late?
Yes. Late or missed submissions of the 56B tax form may lead to penalties under the Inland Revenue Ordinance. Repeated non-compliance could result in more serious enforcement actions.
3. Do I need to file 56B forms for employees who resigned mid-year?
Yes. If an employee received any income during the year, even if they left the company, an IR56B form must be submitted to the IRD.
