- BIR60 is Hong Kong’s individual salaries tax return. The IRD issues it once a year, usually in early May, and most employees, company directors, and sole proprietors must file it.
- For 2025/26, BIR60 was issued on 4 May 2026. The standard deadline is 4 June 2026 (paper). E-filing adds one month automatically (4 July 2026 for most employees).
- Salaries tax is the lower of progressive rates (2% to 17% on net chargeable income) or the two-tiered standard rate (15% on the first HK$5 million of net income, 16% above).
- A director doesn’t have to take a salary. Any salary is taxed on BIR60; dividends aren’t taxed in Hong Kong, though they come out of after-tax profit.
- BIR60 is the individual’s return. The employer’s return (BIR56A) is a separate company filing. The two report the same remuneration from different sides.
- What is it? Form BIR60, the individual/composite salaries tax return.
- Who files? Employees, directors with fees or salary, and sole proprietors.
- When? Issued 4 May 2026 for 2025/26; due 4 June 2026 (paper) or 4 July 2026 (e-file) for most employees.
- Director's salary? Optional. Salary is taxed on BIR60; dividends aren't taxed in Hong Kong.
Your Hong Kong salary tax return arrives as a green BIR60 form, usually in early May. It’s not your company’s Profits Tax Return, and it’s not the employer’s return your company files about what it paid you. If you’re a founder-director seeing BIR60 for the first time, that distinction is where most people stumble.
In this guide, you’ll learn:
- What the BIR60 salaries tax return is
- Who has to file it, including directors
- When BIR60 is due for 2025/26
- How salaries tax is calculated
- How to complete and file BIR60, step by step (Parts 1–13, paper and eTAX)
- How a director’s salary and dividends are taxed differently
What is a salaries tax return (BIR60)?
BIR60 is the individual tax return for salaries tax in Hong Kong. The Inland Revenue Department issues it once a year, usually on the first working day of May, and you use it to report employment income, directorships, and (for sole proprietors) unincorporated business profits for the year of assessment ending 31 March.
It’s sometimes called the composite tax return because one form can cover salaries tax, profits tax on a sole proprietorship, property tax, and personal assessment. For most employees and directors, it’s simply where you declare your salary, director’s fees, and any other taxable income.
Who has to file BIR60?
You must file BIR60 if the IRD issues one to you. Most people with Hong Kong employment income receive one. That includes:
- Employees with Hong Kong-sourced employment income
- Company directors, on any director’s fees or remuneration, even if they’re the sole director of their own company
- Sole proprietors, who report the unincorporated business’s profits through BIR60 rather than a separate Profits Tax Return
You must tell the IRD you're chargeable even if no BIR60 arrives. If you have taxable income and haven't received a return, notify the IRD in writing within four months after the year of assessment ends (by around 31 July). Assuming "no form, no filing" is a common and penalty-bearing mistake for new directors.
When is BIR60 due for 2025/26?
For most employees and directors, the 2025/26 BIR60 deadline is 4 June 2026 on paper, or 4 July 2026 if you e-file. The IRD issued returns on 4 May 2026.
Your exact date depends on whether you’re a sole proprietor and whether you have a tax representative:
Filer type | Issued (2025/26) | Paper deadline | E-file deadline (+1 month automatic) |
Employee / director (no sole-prop business) | 4 May 2026 | 4 June 2026 | 4 July 2026 |
Sole proprietor | 4 May 2026 | 4 August 2026 | 4 September 2026 |
With tax representative (general) | 4 May 2026 | 4 July 2026 | 4 August 2026 |
With tax representative (sole prop) | 4 May 2026 | 5 October 2026 | 5 November 2026 |
E-filing through the IRD’s eTAX portal earns an automatic one-month extension on top of your paper deadline. You don’t need to apply for it.
For 2025/26, the government also passed a one-off 100% salaries tax reduction, capped at HK$3,000 per case. It’s reflected in your final tax assessment for the year.
For the full compliance calendar (Profits Tax, BIR56A, and block extensions), see our Hong Kong tax filing deadlines guide.
How is salaries tax calculated?
Salaries tax is charged at progressive rates on net chargeable income, or at the standard rate on net income, whichever is lower. You don’t pay both.
Net chargeable income (progressive) | Rate (2025/26) |
First HK$50,000 | 2% |
Next HK$50,000 | 6% |
Next HK$50,000 | 10% |
Next HK$50,000 | 14% |
Remainder | 17% |
Two-tiered standard rate (2025/26): 15% on the first HK$5 million of net income; 16% above. Net income here is after deductions but before personal allowances.
Key allowances (2025/26):
- Basic allowance: HK$132,000
- Married person’s allowance: HK$264,000
- Child, dependent parent, and other allowances apply where you qualify
Deductions include:
- MPF contributions (up to HK$18,000 for mandatory contributions to recognised retirement schemes)
- Approved charitable donations (generally up to 35% of net income)
- Self-education expenses (up to HK$100,000)
- Home loan interest (up to HK$100,000, with an additional HK$20,000 in qualifying cases).
The IRD applies whichever calculation gives you the lower tax automatically.
What’s the difference between BIR60 and the employer’s return (BIR56A)?
BIR60 is the individual’s return. BIR56A (with IR56B forms) is the company’s. They report the same remuneration from opposite sides. Understand this before you complete Part 4, because the IRD cross-checks both.
- The company files the employer’s return (BIR56A), declaring what it paid each employee and director.
- The individual files BIR60, declaring the income they received.
Your director's fee appears on both the company's employer's return and your own BIR60. That's not double taxation. It's the IRD cross-checking one figure from two sides. As long as the two returns match, there's nothing extra to pay. Mismatches are what trigger IRD queries.
How do I complete and file BIR60, step by step?
Work through BIR60 part by part, reconcile your figures against Form IR56B, then submit on paper or through eTAX before your deadline. The form looks long, but most employees and directors only need a handful of sections.
The table below shows which parts apply to whom.
BIR60 part | What you report | Who usually completes it |
Part 1 | Personal particulars (name, address, HKID) | Everyone |
Part 2 | Notifications (e.g. foreign tax credit claims) | If applicable |
Part 3 | Property tax (solely-owned rental property) | Landlords |
Part 4 | Salaries tax (employment income, deductions) | Employees and directors |
Part 5 | Profits tax (sole-proprietor business profits) | Sole proprietors |
Part 7 | Personal assessment election | If it lowers your tax |
Part 8 | Home loan interest deduction | Homeowners |
Part 12 | Personal allowances (basic, married, child, etc.) | Everyone who qualifies |
Part 13 | Declaration and signature | Everyone |
What documents should I gather first?
Before you open the form, pull together:
- Form IR56B (or IR56F/IR56G if you left a job mid-year) from each employer. Your company must give you a copy. This is your primary reference for salary, director’s fees, commission, and benefits.
- Bank statements and payment records for any income not on IR56B.
- MPF contribution statements (employee mandatory contributions are deductible).
- Receipts for deductions: charitable donations, self-education expenses, home loan interest statements, qualifying annuity premiums, voluntary MPF/TVC if claiming.
- Business records if you’re a sole proprietor: turnover, expenses, bank statements, and invoices for the year ending 31 March.
- Your prior-year BIR60 or IRD assessment, if you claimed allowances or deductions before and want to match the pattern.
Step 1: Check Parts 1 and 2 (personal details and notifications)
Confirm your name, HKID, correspondence address, and marital status in Part 1 match your records. Errors here delay assessment.
In Part 2, tick any notifications that apply. Most first-time filers leave this blank. If you’re claiming foreign tax credit relief on income also taxed outside Hong Kong, mark the relevant box and complete the appendix with supporting evidence (tax receipts from the other jurisdiction).
Step 2: Report employment income in Part 4 (Salaries Tax)
Part 4 is the core section for employees and directors.
- Part 4.1 (Income): Enter all employment income for the year of assessment (1 April to 31 March). Include basic salary, bonuses, commission, allowances, and taxable benefits. Report income on a pre-MPF basis (before employee MPF deductions). Add up income from all employers and enter the grand total in Box 30. Report commission separately in Box 33 if applicable.
- Cross-check against IR56B: The total on your BIR60 should match what your employer reported on the employer’s return (BIR56A/IR56B). The IRD compares the two. Mismatches trigger queries.
- Director’s fees: If you’re a company director, your director’s fees or salary appear on IR56B like any employment income. Report them in Part 4. Dividends don’t go here. They’re not salaries tax income and aren’t declared on BIR60. If you’re a director of your own company, get your IR56B copy from the company before you start so your BIR60 matches what the employer return will show.
- Part 4.2 (Benefits): Complete if your employer provided a place of residence, a share option scheme, or other taxable benefits. The IR56B usually flags these.
- Part 4.3 (Deductions): Claim allowable employment deductions:
- Self-education expenses (SEE): up to HK$100,000, in Box 39, for approved employment-related courses.
- Expenses wholly and exclusively incurred in producing employment income (uncommon for most employees; don’t claim commuting or ordinary clothing).
Employment-related deductions (MPF, donations, home loan interest) are often completed in their dedicated sections rather than Part 4.3 alone. See Step 4.
Step 3: Report sole-proprietor profits in Part 5 (if applicable)
If you run an unincorporated business, complete Part 5 (Profits Tax). Enter the business name, business registration number, turnover, and assessable profit.
Don’t report the same income twice. If you pay yourself a salary from your sole proprietorship, that salary is part of the business profit in Part 5, not employment income in Part 4. The IRD treats it as profits tax, not salaries tax. You also don’t file IR56B for salary drawn from your own sole prop.
If you had a sole prop but no activity in the year, you still complete the business name and registration number in Part 5 and enter 0 for turnover and profit items.
Step 4: Claim deductions and home loan interest
Beyond Part 4.3, the main deductions most filers use:
|
Deduction |
Where to claim |
2025/26 cap |
What to keep |
|
MPF (mandatory employee contributions) |
Deduction section / eTAX pre-fill |
HK$18,000 |
MPF statement |
|
Approved charitable donations |
Deduction section |
35% of net income |
Receipts from approved charities |
|
Self-education expenses |
Part 4.3, Box 39 |
HK$100,000 |
Course receipts |
|
Home loan interest |
Part 8 |
HK$100,000 (up to HK$120,000 in qualifying cases) |
Loan statements from bank |
|
Qualifying annuity premiums / TVC |
Dedicated deduction boxes |
HK$60,000 combined |
Policy or scheme statements |
If you own rental property, complete Part 3 for solely-owned properties. Jointly owned rental income goes on Form BIR57, not BIR60 Part 3. Home loan interest on your own residence is claimed in Part 8, not Part 3.
Step 5: Claim personal allowances in Part 12
Part 12 is where allowances reduce your tax. For 2025/26, the headline figures are:
- Basic allowance: HK$132,000
- Married person’s allowance: HK$264,000 (if your spouse had no separate income chargeable to tax and didn’t elect personal assessment separately)
- Child allowance: HK$130,000 per child
- Dependent parent/grandparent, disabled dependant, single parent: complete the relevant boxes if you qualify
If you’re married and only one spouse has employment income, complete Part 12.1 for married person’s allowance. You usually don’t need to elect joint assessment in Part 4.4 unless it specifically reduces tax.
Step 6: Consider personal assessment (Part 7)
Personal assessment is optional. It lets the IRD assess your total income (salaries, sole-prop profits, property income) together, which can lower tax if you have losses or heavy deductions in one category.
Elect in Part 7 only if it benefits you. The eTAX system can compute an estimate before you submit. If you’re married and elect jointly, both spouses must sign (Part 13 on each return).
Step 7: Sign and submit
Part 13 is the declaration. Sign and date the return. If your spouse elected joint assessment or nominated you for home loan interest, they sign too.
Option A: E-file through eTAX (recommended)
- Log in to the Individual Tax Portal (ITP) via the eTAX portal. Create an ITP account first if you don’t have one.
- Open the 2025/26 BIR60 e-filing service. If your employer has already filed IR56B, the system may pre-fill income figures (timing depends on when the employer submitted).
- Complete each applicable part online. You can save a draft and return later.
- Use the built-in tax computation to preview salaries tax before submitting.
- Submit electronically. You receive confirmation in eTAX. E-filing earns an automatic one-month extension (e.g. 4 July 2026 instead of 4 June 2026 for most employees in 2025/26).
Option B: Paper filing
- Use the original green BIR60 the IRD mailed you. Don’t submit a photocopy unless the IRD accepts one for your case.
- Complete all applicable parts in ink or as instructed.
- Mail the signed return to the IRD address on the form (or submit as directed on the return cover) before the deadline printed on page 1 (normally one month from issue).
What happens after I file?
- The IRD issues an assessment. You’ll receive a Notice of Assessment showing final tax for 2025/26 and provisional tax for 2026/27.
- Pay by the due date on the demand note. Options include FPS, online banking, or in person at post offices. Late payment attracts a 5% surcharge, then further penalties.
- Keep records for seven years: IR56B copies, receipts, bank statements, and a copy of the filed return.
- Need to amend? E-filed returns can be corrected via “Make a Request / Reply” in ITP. Paper filers write to the assessor with the corrected figures.
Does a company director have to take a salary?
No. Paying yourself as a director of your own Hong Kong company is optional. How you pay yourself changes the tax. The two main routes are a salary (or director’s fee) and dividends.
- Salary or director’s fee: taxed on you personally as salaries tax and reported on BIR60. It’s also deductible for the company against its profits tax.
- Dividends: not taxed in Hong Kong, and not reported as income on BIR60. But they’re paid out of the company’s after-tax profit, so the company has already paid profits tax on that money.
That trade-off (a deductible-but-taxable salary versus a non-deductible-but-untaxed dividend) is why the “best” mix isn’t automatic. This page covers how each is taxed and reported. For how to structure and extract the money, see how a director gets paid by their own company.
What about non-resident directors?
A non-resident director of a Hong Kong company can still be subject to Hong Kong salaries tax on director’s fees, because the fees have a Hong Kong source regardless of where the director lives. The rules differ for a non-resident employee versus a director, and days-in-Hong-Kong tests can apply to employment income.
This is a case where the detail depends on your situation.
What are the most common BIR60 filing mistakes?
These are the errors that trigger IRD queries or penalties:
- Assuming no form means no filing. If you have chargeable income and no BIR60 arrived, notify the IRD by around 31 July, don’t wait.
- Reporting sole-prop salary in Part 4 instead of Part 5. Salary from your own unincorporated business belongs in Part 5, not employment income.
- BIR60 totals don’t match IR56B. Cross-check Box 30 against your employer’s IR56B before you submit.
- Missing the deadline without e-filing. Paper returns are due one month from issue; eTAX adds one month automatically if you file online.
- Claiming dividends on BIR60. Dividends aren’t salaries tax income and don’t go on the form.
- Not keeping receipts. You don’t submit proof with the return, but the IRD can ask for supporting documents for up to six years after the year of assessment.
How Sleek helps with payroll and salaries tax
Sleek runs payroll and tax filing together, so the employer side and the individual side line up rather than drifting apart.
With Sleek, you can:
- Keep the two returns consistent: Our accounting and tax filing team prepares your BIR60 and reconciles it against the income reported for you, so the figures match.
- Have the employer side handled: Our payroll service prepares and files the employer’s return (BIR56A/IR56B) for your company.
- Get the director question answered for your case: We advise on how a director’s salary and dividends are taxed and reported, so the reporting is right whichever mix you choose.
- File on time, with the e-filing extension: We track the early-May issue and the deadline, and use the e-filing extension where it helps.
Your salary, your director’s fees, and your company’s employer return are handled as one connected process.
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FAQs about salaries tax returns and BIR60
If you have taxable income but no return has been issued, you must notify the IRD in writing within four months after the year of assessment ends (by around 31 July for 2025/26). Don’t wait for a form to arrive. The IRD can issue estimated assessments and penalties if you’re chargeable but haven’t notified them.
Yes, if the IRD issued you a BIR60. You must complete and return it even if your income is below the taxable threshold and no tax is due. Filing a nil or low-income return is still required. Not filing an issued return can lead to penalties or an estimated assessment.
Neither is automatically better. A salary is taxed on you personally but is deductible for the company’s profits tax. A dividend isn’t taxed in your hands but is paid out of profit the company has already been taxed on. The right mix depends on your income level, allowances, and the company’s profits. Our guide on how a director gets paid works through the trade-off.
Personal assessment is an optional election to have your total income (salaries, sole-prop profits, property income) assessed together, which can lower tax if you have losses or deductions in one category. You claim it on BIR60 if it benefits you. The IRD will only apply it if it reduces your overall tax.
Yes. Sleek’s payroll and accounting team prepares BIR56A/IR56B for the company and supports BIR60 for directors and employees, so both sides reconcile. Talk to our tax team if you’re filing your first return as a director.
