The Employer’s Return is an annual tax form issued by Hong Kong’s Inland Revenue Department (IRD), requiring employers to report employee pay details, including salaries, bonuses, and allowances for the relevant assessment year. It ensures accurate tax reporting for both employers and staff.
Filing on time and accurately is not just best practice—it’s legally required. Errors or delays can result in penalties and scrutiny. This guide explains what the Employer’s Return for Hong Kong businesses involves, why it’s important, and how to file it correctly.
Filing employer's return made easy.
Forms overview: BIR56A vs IR56B
Form | Purpose | Who Completes It | Covers | When to Submit |
BIR56A | Summary form confirming employer’s filing status | Employer / Company officer | Overall declaration for all IR56B forms | Annually, within 1 month of IRD issuance |
IR56B | Individual form reporting employee remuneration details | Employer | Income details for each employee | Submitted with BIR56A each assessment year |
Image credit: IRD
Difference between Annual Return & Profits Tax Return
Image credit: IRD
What are the obligations of employers in filing the employer’s return in Hong Kong?
Filing the Employer’s Return in Hong Kong goes beyond paperwork. Employers must fulfill key responsibilities set by the IRD to remain compliant. Here are the essentials every employer should follow.
1. Annual reporting requirements
Hong Kong employers must file the Employer’s Return BIR56A and IR56B within one month of receiving the IRD notice. This ensures accurate employee income reporting and compliance. Late or incorrect filings may incur penalties.
2. Keeping and maintaining payroll records
Employers are required to keep the following records for at least seven years:
- Salary history
- Employment terms and contracts
- MPF contributions and payment records
- Bonuses and incentive payouts
- Leave and attendance records
Maintaining clear, accurate records is essential for smooth and compliant Employer’s Return filing.
3. Tax reporting responsibility (IRD Expectations)
The IRD expects employers to:
- Report all forms of the employer’s return of remuneration and pensions (e.g., salary, bonuses, allowances)
- Notify the IRD when employees are hired, resign, or leave Hong Kong
- Withhold final payments if tax clearance is required
- Ensure all submitted information is complete, correct, and timely
Meeting these obligations demonstrates tax compliance and reduces the risk of IRD penalties or audits.
Who needs to file and sign the employer’s return?
Any person or entity that hires staff full-time, part-time, temporary, or contract is considered an employer under Hong Kong’s Inland Revenue Ordinance. This includes companies, partnerships, sole proprietors, and individual business owners. If you’ve paid any remuneration during the year, you must file the Employer’s Return.
Authorised signers: who qualifies and alternatives
The BIR56A form must be signed by a responsible person in the organization. This is typically a:
- Company director
- Business owner
- Partner (in case of a partnership)
- Authorised representative (e.g., tax agent)
If an authorised person cannot sign, companies may appoint a representative through a written authorisation submitted to the IRD.
Directors and self-employed filing responsibilities
Even if you’re a director or self-employed, you must file the Employer’s Return if you’ve paid yourself a salary, director’s fees, or any form of compensation. You’re considered both employer and employee in this case, and your filing obligations still apply.
Employer’s return filing procedures
Filing the Employer’s Return in Hong Kong can be done in several ways, depending on your business setup and preferences.
Step-by-step guide for each filing method
Below is a step-by-step guide to each method, including key login details and tips to avoid common filing issues.
ER e-Filing (with authorised signer)
- Log in to the eTAX portal via the IRD website.
- Use the eTAX password, digital certificate, or MyGovHK account linked to the company.
- Select “File Employer’s Return (BIR56A & IR56B)” from the menu.
- Complete and review the forms.
- Have the authorised person digitally sign and submit the return.
- Save or print the Acknowledgement Receipt for your records.
ER e-Filing (without authorised signer)
- A tax representative or staff member can fill out the return via the e-Filing platform.
- Once completed, generate the draft for review.
- Export the return and pass it to the authorised signer for approval.
- Upload the signed version or submit through the eTAX system using authorised access credentials.
- Confirm submission and download the Acknowledgement Receipt.
Mixed mode filing
- Submit BIR56A electronically, then print and sign the IR56B forms manually.
- Mail the signed IR56B forms to the IRD within the HK tax filing deadline.
- Attach a cover letter referencing the BIR56A submission.
This method is useful if your company prefers or requires hard copy records for employee forms.
Offline (paper) submission
- Use the Employer’s Return forms mailed by the IRD.
- Fill out BIR56A and individual IR56B forms by hand or typed.
- Have the forms signed by a responsible officer.
System login details and common technical tips
✅ Make sure your eTAX account is active and linked to the business.
✅ Use compatible browsers (e.g., Chrome, Firefox, Edge—avoid outdated versions).
✅ Ensure pop-up blockers are disabled to access submission confirmation screens.
✅ Keep a copy of all submission receipts and double-check employee details before finalising.
These procedures help ensure that your employer’s return is filed accurately and on time, no matter which method you choose.
Employer’s return filing deadlines and extensions
Filing the Employer’s Return on time is a legal requirement in Hong Kong. Knowing the key dates and how to request an extension helps ensure compliance and avoid penalties.
Key dates for each fiscal year
The employer’s return is typically issued by the Inland Revenue Department (IRD) on the first working day of April each year. Employers must submit the BIR56A and IR56B forms within one month from the issue date—usually by early May.
How to request an extension
Need more time? Employers can request an extension by writing to the IRD before the filing deadline. Be sure to include your:
✔ Employer file number
✔ Reason for the request
✔ Proposed extension date
The IRD may approve or decline based on your justification, so always file early if possible.
Consequences of missed deadlines
Late submissions can lead to penalties, prosecution, or even audits. To understand the full scope of risks, visit our guide on business penalties in Hong Kong.
Common employer’s return filing pitfalls to avoid penalties
Mistakes in filing the employer’s return can lead to fines, delays in employee tax clearance, or follow-up investigations. Below are the most common pitfalls employers in Hong Kong should watch out for to stay compliant and penalty-free:
- Missing the submission deadline: Returns must be filed within one month of issue by the IRD.
- Incomplete or incorrect IR56B details: Errors in salary, MPF, or allowances can lead to rejections or employee tax issues.
- Failing to report part-time, temporary, or casual staff: All paid individuals must be included.
- Not reporting non-cash benefits: Items like housing, share options, and allowances must be declared.
- Overlooking departing employees: Employers must notify the IRD and withhold final pay until tax clearance.
- Using outdated or incorrect forms: Always file using the latest version issued for the current year.
- Not signing paper submissions: Unsigned returns are considered invalid.
- Ignoring change of address or contact details: Missing IRD notices can result in unintentional late filing.
Avoiding these common pitfalls helps ensure a smooth filing process and reduces your risk of incurring penalties from the IRD.
What happens when employers fail to file returns in Hong Kong?
While specific company names are not publicly disclosed, the Inland Revenue Department (IRD) in Hong Kong has taken enforcement actions against employers who fail to file the employer’s return (Forms BIR56A and IR56B) on time. Penalties for non-compliance can include fines up to HK$10,000, additional tax assessments, and even prosecution under the Inland Revenue Ordinance.
In one reported instance, a company was fined HK$10,000 for late submission of the employer’s return, and the IRD imposed an additional tax of HK$45,000. Such penalties underscore the importance of timely and accurate filing to avoid financial and reputational repercussions.
To prevent these issues, employers should:
- Ensure all remuneration, including non-cash benefits, is accurately reported.
- Submit the employer’s return within one month of issuance.
- Maintain up-to-date payroll records for at least seven years.
- Notify the IRD promptly of any employee departures or changes in employment status.
By adhering to these practices, businesses can maintain compliance and avoid the consequences associated with late or inaccurate filings.
How to file the employer’s return for unique cases
Not all employees fall into the standard full-time local category. Below are filing guidelines for various special cases employers in Hong Kong may encounter when completing the employer’s return.
Employees who worked in Hong Kong
For staff who worked in Hong Kong during the assessment year, employers must file an IR56B form detailing their total remuneration, regardless of contract type or residency status. This applies even if the employee has since left the company.
Overseas staff
If the employee worked entirely outside Hong Kong and did not visit for work purposes, filing may not be necessary. However, if they performed any services in Hong Kong, an IR56B is usually required. When in doubt, file to remain compliant.
Freelancers/Contractors
Freelancers and independent contractors who are not classified as employees under a contract of service typically do not require an IR56B. Instead, these payments may be reported through other means, such as Form IR56M, depending on their arrangement.
Departing employees
When an employee plans to leave Hong Kong for good or for an extended period:
- Employers must file IR56G at least one month before the departure date.
- Final payment to the employee should be withheld until the IRD issues a Letter of Release.
- This ensures proper tax clearance before the employee exits Hong Kong.
Terminated staff
For staff whose employment ended during the year (but are not leaving Hong Kong), employers still need to file IR56B for that year. If the employee left before the issuance of the employer’s return, file an IR56B upon termination, then again with the annual return if requested.
Illustrative example
A finance manager resigns and plans to emigrate. The employer must submit Form IR56G, withhold her final salary, and wait for the IRD’s clearance before payment. Failing to do so may result in penalties for both the employer and employee.
Handling these cases correctly helps avoid compliance issues and ensures smooth processing for employees and the IRD alike.
Stay compliant without the headaches with Sleek
Filing the employer’s return doesn’t have to be stressful. Whether you’re managing local staff, overseas teams, or complex payroll scenarios, Sleek takes the guesswork out of compliance. Our expert team handles your tax filings, payroll, and accounting with accuracy and efficiency, so you can focus on growing your business. Learn more about our accounting and payroll services in Hong Kong and simplify your employer obligations today.
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FAQs about employer’s return in Hong Kong
Do I need to file if I didn’t hire anyone?
Yes. You still need to file the BIR56A and state that no employees were hired during the year.
What’s the difference between BIR56A, IR56B, and other employer’s return forms?
BIR56A is the summary form; IR56B reports income per employee. Other forms, like IR56G and IR56F, are for special cases like departures or terminations.
Are employer’s returns required for dormant companies?
Yes, if the IRD issues a BIR56A, you must respond—even if no employees were hired or paid.
How long should employers keep employee tax records in Hong Kong?
At least 7 years. This includes salary, MPF, and contract records.
Is it mandatory to file employer’s returns for part-time or freelance workers?
Yes, for part-timers. Freelancers usually don’t require IR56B unless under a contract of service—use IR56M if applicable.
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