For companies operating in Hong Kong, the statutory “Employer’s Tax Season” falls between April and May each year. Whether you are a startup or an experienced business owner, failing to report or late submission of employee remuneration data can lead to heavy fines. This article, compiled by the professional team at General Accounting, helps you understand the differences and filing details of BIR56A and IR56B in one go.
Quick Navigation: Core Information on Employer’s Returns
| Item | Key Details |
|---|---|
| Form Name | BIR56A (Summary) & IR56B (Employee Details) |
| Year of Assessment | From 1 April of the current year to 31 March of the following year |
| Date of Issue | The first working day of April each year |
| Submission Deadline | Within 1 month of issue (no extension allowed) |
| Penalty Amount | Up to HKD $10,000; standard fixed penalty starts from $1,200 |
What is an Employer's Return?
The full name of the Employer’s Return is the “Employer’s Return of Remuneration and Pensions.” It includes forms IR56B and BIR56A. It is used by employers to report the remuneration of part-time or full-time employees and directors who remained employed during the year of assessment (from April 1 to March 31 of the following year) to the Inland Revenue Department.
Further reading:
Why must a company file taxes for its employees?
This is not only a legal responsibility but also the foundation of a company audit.
- Tax Verification: Salaries are company expenses and employee income; the two must match, as this directly affects the company’s profit calculation and actual tax paid.
- Basis for Employee Tax Filing: The Inland Revenue Department (IRD) will issue individual tax returns (BIR60) to employees based on the IR56B information provided by the employer.
- Audit Necessity: Certified Public Accountants will require the Employer’s Return as supporting evidence for labor costs when preparing audit reports.
Further reading:
[Company Tax Filing] Unlimited/Limited Company Tax Tutorial | Latest Guide on Tax Rates, Fees, and Processes
How much salary is taxable? Salaries Tax Calculation, Personal Assessment, and Tax Allowance Cheat Sheet
Differences Between BIR56A and IR56B
BIR56A can be understood as a summary of the employer’s tax reporting data, covering the number of IR56B forms, submission methods, company contact information, and signer details.
IR56B contains the individual detailed information for each employee of the company, including name, contact details, total salary, and other breakdowns.
Who needs to report? (Reporting Thresholds)
According to the Inland Revenue Ordinance, the following four categories of persons must be reported:
- Single Persons: Annual remuneration of HK$132,000 or more.
- Married Persons: Must be reported regardless of the amount of remuneration.
- Part-time Employees: Regardless of the amount of remuneration.
- Company Directors: Regardless of the amount of remuneration or director’s fees.
Professional Advice: Even if an employee’s salary is below the threshold, it is still recommended to report it to serve as the strongest evidence of the company’s salary expenses.
Further reading:
Latest Guide to eTAX Personal Tax Website (ITP): One-stop Tax Filing and Management
Practical Tutorial: Guide to Filling Out BIR56A and IR56B
BIR56A: Summary of Employer's Return
- Step 1: Confirm the correspondence address; if it has changed, please fill in the new address.
- Step 2: Tick whether the company has employees who need to be reported.
- Step 3: Select the submission method (hard copy or electronic) and specify the number of IR56B forms.
- Step 4: Signed and chopped by an authorized person (director, partner, or secretary, etc.).
IR56B: Individual Employee Remuneration Details
When filling this out, please prepare the employee’s ID number, residential address, marital status, and remuneration details.
- Total Remuneration: Includes basic salary, bonuses, commissions, education subsidies, and the amount before MPF contributions are deducted.
- Period of Employment: For the 2025/26 year, this is from April 1, 2025, to March 31, 2026.
- Housing Allowance: If quarters are provided, the lease must be stamped (duty paid).
- Paid Outside Hong Kong: If the salary is not paid by a Hong Kong company, it must be declared in Part 13.
Mistake Prevention Guide: Common Employer Tax Filing Errors
Many employers mistakenly believe that they “do not need to file an Employer’s Return” in the following situations, resulting in fines:
❌ Company has no employees: You still must return BIR56A and tick “None.”
❌ Company is in loss or has no operations: As long as you receive a tax return, you are obligated to fill it out and return it by the deadline.
❌ Not employed for the full year: Employees who joined or left mid-year must also be reported based on their period of employment.
❌ Non-local employees: As long as an employment relationship exists, reporting is required regardless of whether they are Hong Kong residents.
❌ Part-time employees: Both full-time and part-time employees must be reported.
❌ Paid as a Director: Directors are considered employees and must be reported based on director’s fees.
Points to Note When Filing Taxes for Employees
Deadline for Company to File for Employees: Within one month of the issue date of the BIR56A form.
Keep Records for 7 Years: Employee salary payment details must be kept for at least 7 years.
Verify Information: Check personal details and total salary with employees before submitting the tax return.
Keep 2 Copies of Form 56B: One for tax filing and another for the employee’s records.
Departed Employees: Tax reporting is still required; send a copy of the 56B form to their address after completion.
What should I do if I don't receive the Employer's Return?
Check if the company’s registered address is correct. If the business address has changed, you need to submit the Employer’s Notification of Change of Correspondence Address.
Professional Tip: Employers have a responsibility to report employee tax returns. If you have employees, you should proactively contact a tax representative to apply for the Employer’s Return.
If the Employer’s Return is lost or missing, you can request a duplicate via the following link:
Duplicate of Employer’s Return IR56A. A duplicate IR56A will be reissued to the company address within approximately 3 working days.
Does the company need to file taxes for outsourced workers?
Yes, but for outsourced workers, commissions, or remuneration expenses where no employment relationship exists, you should fill out “IR56M – Notification by an employer of remuneration paid to persons other than employees.”
Further reading:
What is IR56M? How to fill out IR6036B? Step-by-step tutorial (with form download links)
Therefore, before filing for employees, a company should first clarify the relationship between the two parties—whether it is an employment relationship or an outsourced worker—before deciding whether to file IR56B, BIR56A, IR56M, or IR6036B.
If you have questions about employee tax filing, you should consult a professional accounting firm to avoid filling out the Employer’s Return incorrectly, which could lead to unnecessary trouble or fines.
Employer's Return Filing Templates and Download Links
2025/26 Employer’s Return (IR56A) Filing Template
2025/26 Employer’s Return (IR56B) Filing Template
Frequently Asked Questions
What to do if you don't receive the Employer's Return?
Please check if the registered address is correct. If lost, you can apply to the Inland Revenue Department for a duplicate (issued within approximately 3 working days).
Do outsourced workers (Freelancers) need to be reported?
Yes. However, if there is no employment relationship, IR56M should be filed instead of IR56B. Further Reading: What is IR56M? How to fill out IR6036B? Step-by-step filing tutorial
Can I apply for an extension for the Employer's Return?
No, because this would affect the progress of the Inland Revenue Department issuing individual tax returns.
Who can sign the Employer's Return?
Directors of limited companies, precedent partners or proprietors of unlimited companies, and senior officers or managers of the company.
Does the total salary reported on IR56B include the employer's MPF contribution amount?
Yes, the total salary reported on the Employer's Return of Remuneration and Pensions is the monthly salary, which is the total amount before deducting the employer's MPF contributions.
Do I need to report for non-local employees?
Yes, regardless of whether the employee is a Hong Kong resident, as long as there is an employment relationship, the employer must report their salary.
About Us
General Accounting has been established for over 20 years and holds a Trust or Company Service Provider License (TC002940). We provide professional services for employer tax returns, salary reporting, and audit consultation.
- Official Website: https://www.genacct.com/
- Professional Services: Assisting with BIR56A/IR56B to avoid tax risks arising from late submission or incorrect filing.
Further Reading:
