Hong Kong Employer’s Return and IR56 Forms: What Employers File and When

The annual Employer’s Return: BIR56A and IR56B

The Inland Revenue Department issues the Employer’s Return (Form BIR56A) on the first working day of April. It reports remuneration for the year of assessment from 1 April to 31 March, whatever the employer’s accounting date, and must be lodged within one month of issue. The profits tax block extension scheme does not apply. An employer that receives a return must file it even if it has no employees, has not started business or has ceased. An employer with staff but no return can request one on Form IR6163.

An IR56B goes with the return for each reportable employee. For 2025/26 the IRD required one for every single employee paid HK$132,000 or more in the year, and for every married employee, part-time employee and director regardless of the amount. Staff who worked partly or wholly outside Hong Kong are included. Remuneration covers salary, bonus, commission, directors’ fees, housing and other benefits, and share option gains; dividends paid to shareholders are not reported. Each employee should get a copy of their IR56B.

Some payments to non-employees must also be reported. Payments over HK$25,000 in the year to a local unincorporated service provider, such as a consultant, agent or freelancer, or over HK$200,000 to a sub-contractor, go on Form IR56M under cover of Form IR6036B, filed with the Employer’s Return. Payments to companies are excluded.

Event-driven forms: IR56E, IR56F and IR56G

Three forms are triggered during the year, and the employee should receive a copy of each. Form IR56E reports a new hire and is due within three months of the start date if the employee is likely to be chargeable to salaries tax. Form IR56F reports an employee whose job is ending but who is staying in Hong Kong, and is due one month before employment ends; if notice is shorter, file as soon as the departure is known. In the IRD’s own example, for an employee who resigns on 30 April 2026, the employer files an IR56B for the year to 31 March 2026 and an IR56F for 1 to 30 April 2026.

Form IR56G applies when an employee is about to leave Hong Kong, for example on an overseas posting or a permanent move. File two paper copies, or file electronically, at least one month before the expected departure date. The employer must then withhold all money or money’s worth due to the employee, including final salary, bonus, commission and reimbursements, for one month from the date the IR56G was given or until the IRD issues a Letter of Release (Form IR607), whichever is earlier, and then release it. Further or revised forms are needed if share awards vest or other pay arises after tax clearance.

E-filing, penalties and payroll records

Employers can file on paper, through the IRD’s IR56 Forms Preparation Tool, or through the Employer’s Return e-Filing Services. Online Mode needs a digital signature, using an Individual Tax Portal password, a recognised personal digital certificate or iAM Smart+, and allows only one annual submission per year of assessment. Mixed Mode uploads a data file and a signed control list, but cannot be used for IR56G.

Failing without reasonable excuse to file the return or the IR56E, IR56F or IR56G notices, or to withhold money from a departing employee, is an offence under section 80(1) of the Inland Revenue Ordinance: a HK$10,000 fine, and the court can order the employer to comply. The Commissioner can compound the offence instead. Correct errors with supplementary or amended IR56 forms.

The IRD expects employers to keep payroll records for at least seven years, covering each employee’s personal details, the nature of the employment, cash and non-cash remuneration, MPF contributions and the employment contract. MPF contributions run on their own monthly cycle through the eMPF Platform and are covered in our separate MPF guide.

IR56 checklist for the 2026/27 year

• At each hire: file IR56E within three months of the start date if the employee is likely to be chargeable, and give the employee a copy.
• At each resignation or termination: file IR56F one month before the last day, or as soon as the departure is known.
• When an employee is leaving Hong Kong: file IR56G a month before departure, and hold back all payments until one month has passed or the Letter of Release arrives.
• After 31 March 2027: reconcile 2026/27 payroll and confirm which employees and service providers are reportable.
• First working day of April 2027: look out for the BIR56A; if you employ staff and none arrives, request one on Form IR6163.
• Within one month of issue: file BIR56A with IR56B, plus IR56M where the thresholds are met, and give each employee a copy.
• Keep payroll records and copies of every form for at least seven years.