Accounting & Tax

Employer's Return and IR56B Filing in Hong Kong

Name: Primasia Corporate Services Limited
Address: Suite 1901-04, 19/F, Tai Yau Building, 181 Johnston Road, Wan Chai, Hong Kong, HK
Telephone: +852 2882 2088
Price range: $$

Every Hong Kong employer receives an employer's return each April and must report the remuneration of every employee on an IR56B. We prepare the return, reconcile it to your payroll records, file it electronically and manage the commencement, cessation and departure notifications that keep your file clean through the year.

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TCSP licence TC000446
Xero Silver Partner
Established 2002
HKFRS statutory accounts
Hong Kong and mainland China
One in-house team
TCSP licence TC000446
Xero Silver Partner
Established 2002
HKFRS statutory accounts
Hong Kong and mainland China
One in-house team

How we help

Employer's Return with Primasia

Annual return pack

The BIR56A and an IR56B for each employee, prepared from your payroll ledger and reconciled to MPF and bank records before anything is filed.

In-year notifications

IR56E, IR56F and IR56G filed on time as people join, leave or depart Hong Kong, so the April return holds no surprises.

Non-employee payments

IR56M returns for commissions, fees and other payments to people who are not employees, when the IRD requests them.

Electronic filing

Returns submitted in the IRD's electronic format, with filing confirmations and copies kept on your compliance file.

What's included

BIR56A employer's return preparation and filing
IR56B for every employee, reconciled to payroll
IR56E commencement notifications for new hires
IR56F cessation and IR56G departure notifications
IR56M returns for non-employee payments
Electronic filing and IRD correspondence

What is the employer's return?

The employer's return is the annual report every Hong Kong employer makes to the Inland Revenue Department of the salaries, allowances, benefits and pensions paid to staff in the tax year ending 31 March. The IRD issues the Employer's Return of Remuneration and Pensions (BIR56A) on the first working day of April, and the employer completes an IR56B for each employee.

The IRD uses these figures to issue individual salaries tax returns and assessments, so an error on an IR56B becomes a problem for your employee as well as for you.

Who must file an employer's return

Any business that receives a BIR56A must complete and return it, even if it had no employees in the year. Employers who did not receive one but have employees chargeable to salaries tax should still report them. Directors' fees, commissions, bonuses, housing benefits and share awards are all reportable, not only basic salary.

IR56B: what goes on the form

Each IR56B reports the employee's details, the period of employment, every category of income paid in the year and any place of residence provided. Figures must agree with your payroll ledger and MPF records. We reconcile all three before filing, which is where most errors are caught.

Deadlines, e-filing and penalties

The BIR56A and IR56Bs are normally due within one month of the date of issue, unless extended. Returns can be filed electronically in the IRD's specified format, which we use for every client. Late or incorrect filing can lead to prosecution and fines, and failing to file an IR56G before an employee departs exposes the employer to liability for the employee's unpaid tax.

Part of a wider payroll service

Many clients start with the employer's return and move their monthly payroll to us once they see the reconciliation. Our HR & Payroll service runs payroll, MPF and the full IR56 series together, so the April return is prepared from records we already keep.

The annual cycle

How the employer's return year runs

The Hong Kong tax year runs from 1 April to 31 March. This is the cycle we manage for every employer client.

01
Through the year
- File IR56E within three months of starting if the employee is likely liable to salaries tax
- File IR56F one month before employment ends
- File IR56G one month before departure from Hong Kong for good or a substantial period, and withhold final payments
02
April: the return is issued
- The IRD normally issues the BIR56A on the first working day of April
- We collect the year's payroll, benefits and allowance data
- Remuneration is reconciled to payroll, MPF and bank records
03
Within one month: file
- Prepare an IR56B for every employee paid in the year
- File the BIR56A and IR56Bs electronically within one month of issue, unless an extension applies
- Provide employees with copies of their IR56B for their own returns

Form guide

The IR56 forms, and when each one applies

Purposes summarised from the Inland Revenue Department's published guidance for employers.

BIR56A

Employer's Return of Remuneration and Pensions
Normally issued on the first working day of April
Filed within one month of issue unless extended, with the IR56Bs attached

IR56B

Remuneration and pensions paid to each employee in the tax year
One form per employee
Filed with the BIR56A

IR56E

Notification of a new employee likely to be chargeable to salaries tax
Filed within three months of the start date

IR56F

Notification that an employee is leaving the job
Filed one month before employment ends

IR56G

Notification that an employee is leaving Hong Kong for good or a substantial period
Filed one month before departure
Final payments withheld until the IRD releases them

IR56M

Remuneration paid to persons who are not employees, such as commissions or fees
Filed when the IRD requests it

Employer's return

Hand over this year's employer's return.

Send us your BIR56A and payroll records and we will prepare every IR56B, reconcile the figures and file before the deadline.

Get help with my employer's return

FAQs

Employer's Return: questions we are asked most

What is the IR56B form?+

The IR56B is the form an employer completes for each employee, reporting the remuneration and pensions paid in the tax year to 31 March. It is filed with the employer's return (BIR56A).

When is the employer's return due?+

The IRD normally issues the BIR56A on the first working day of April, and it is normally due within one month of the date of issue unless extended, together with the IR56Bs.

What is the BIR56A?+

The BIR56A is the Employer's Return of Remuneration and Pensions. It is the cover return that summarises the IR56B forms filed for each employee.

What is the difference between IR56E, IR56F and IR56G?+

IR56E reports a new employee within three months of starting if they are likely liable to salaries tax. IR56F reports cessation one month before employment ends. IR56G reports departure from Hong Kong for good or a substantial period, one month before departure, and requires the employer to withhold final payments.

What is the IR56M?+

The IR56M reports remuneration paid to persons who are not employees, such as commissions or service fees. Businesses file it when the IRD requests it.

Do I need to file if I had no employees?+

Yes. If you receive a BIR56A you must complete and return it, even if there is nothing to report.

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Where we deliver this

Hong Kong

Our home market, and the base for most of Asia's holding structures.

Mainland China

WFOE and Representative Office registration, then the first year of reporting.

Let's start a conversation

Tell us where the business is heading. We will tell you what it takes to get the structure, books and filings in order.

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