Annual Employer's Return (BIR56A) in Hong Kong
In brief
•Every Hong Kong employer must file an Annual Employer's Return with the Inland Revenue Department each year. This guide explains the BIR56A form, the full IR56 form family, filing deadlines, reporting thresholds, and the penalties that apply if you miss them.
Annual Employer's Return (BIR56A) in Hong Kong
Under section 52 of the Inland Revenue Ordinance (Cap. 112), every employer in Hong Kong has a legal obligation to report the remuneration paid to employees. The annual employer's return — Form BIR56A — is the cornerstone of this obligation. It must be filed within one month of issue, regardless of whether the business is active or has any employees to report. This guide walks through every aspect of the employer's return process, from understanding which employees to report to filing electronically and avoiding common compliance mistakes.
What Is the Annual Employer's Return?
The Annual Employer's Return is a formal declaration filed with the IRD each year covering the tax year ending 31 March. The IRD issues Form BIR56A to all registered employers on 1 April each year. Employers must complete and return the form within one month — typically by 2 May.
The BIR56A is a cover form. Attached to it is one IR56B form for each employee who meets the reporting criteria for that tax year. Together, BIR56A and IR56B give the IRD a full picture of every employer's payroll in Hong Kong.
Important: The Block Extension Scheme, which grants extra filing time for some other tax returns, does not apply to the Employer's Return. The one-month deadline is firm.
NIL Filing
Even if your company has no employees, has not yet commenced business, or has already ceased operations — you are still required to file. Simply tick the "NO" box on the BIR56A form. Failure to file is not excused by having nothing to report.
Which Employees Must Be Reported (IR56B)
For the tax year 2024/25, you must complete an IR56B and include it with your BIR56A for every employee who falls into any of the following categories:
•Single employees earning an annual income of HKD 132,000 or more
•Married employees (regardless of income amount)
•Part-time employees (regardless of income amount)
•Company directors (regardless of income amount)
What to Report
Each IR56B must include the employee's personal particulars, the full amount of remuneration paid (including salary, bonuses, commission, and fringe benefits in cash or kind), MPF contributions, and the period of employment.
Overseas Employees
If an employee worked partly or wholly outside Hong Kong, you are still required to file an IR56B reporting the full aggregate remuneration. Include relevant notes in the remarks column. The employee may then separately claim exemption on their own tax return.
The Full IR56 Form Family
BIR56A and IR56B are not the only employer reporting forms. The IRD requires separate notifications throughout the year for key employment events:
BIR56A + IR56B
Annual return — all employees who meet reporting criteria
Within 1 month of issue (1 April)
IR56E
New employee likely to be chargeable to Salaries Tax
Within 3 months of employment start date
IR56F
Employee ceasing employment but remaining in Hong Kong
Not later than 1 month before the last day of employment
IR56G
Employee leaving Hong Kong permanently or for a substantial period
Not later than 1 month before expected departure date
Employer Withholding (IR56G)
When you file an IR56G, you are legally required to withhold all payments due to that employee — including salary, bonus, and expense reimbursements — until they produce a letter of release from the IRD confirming their tax clearance.
You are required to provide each employee with a copy of their IR56B, IR56E, IR56F, or IR56G as applicable, so they can complete their own tax return correctly.
How to File: Paper and Electronic Options
The IRD supports both paper and electronic filing of all IR56 forms.
Electronic Filing (Recommended)
Employers can file the entire employer's return online through the IRD's eTAX platform. This is faster, reduces manual errors, and provides instant acknowledgement of receipt. The IR56 Forms Preparation Tool is available from 1 March each year — employers can begin preparing their IR56B data files before the BIR56A is even issued, allowing for an earlier, more organised submission.
Paper Filing
Paper IR56 forms can be downloaded from the IRD website (Public Forms section) or requested by post using Form IR6163.
If You Did Not Receive a BIR56A
If you have employees who meet the reporting criteria but have not received a BIR56A by mid-April, do not assume you are exempt. Submit Form IR6163 to request the IRD issue a return. New companies that receive no employer's return for their first year should have the manager submit Form IR6163 to request one.
All remuneration must be reported in Hong Kong dollars. Use the IRD's published average exchange rates for any foreign currency amounts.
Keeping Payroll Records
From the moment you hire your first employee, you are required to maintain a detailed payroll record for each person. These records must be kept for a minimum of 7 years.
•Personal particulars: name, address, HKID or passport number, marital status
•Nature and capacity of employment: full-time or part-time; job title
•Cash remuneration: all amounts in any currency, including remuneration paid outside Hong Kong
•Non-cash and fringe benefits: quarters, holiday journey benefits, share awards, share options
•MPF contributions: both employer and employee contributions
•Employment contract and any amendments to terms of employment
•Period of employment
You must also notify the IRD of any changes in an employee's personal particulars — such as change of address or marital status — and any change in the terms of employment. If an overseas employee does not yet have a HKID, report their passport number and follow up with the IRD once the HKID is issued.
Penalties for Non-Compliance
Non-compliance with the employer's return obligations under IRO section 52 carries significant penalties.
Late or Non-Filing of BIR56A
•Fine of up to HKD 10,000 under IRO section 80(1)
•The IRD may issue an estimated tax assessment without deductions or exemptions
•Court may order additional penalties
Incorrect or Misleading Information
•Fine of up to HKD 10,000
•Additional tax of up to 3 times the amount of tax undercharged (IRO sections 80(2) and 82A)
Continued Non-Compliance
•Prosecution and legal action
•Company officers — directors and secretaries — may be held personally liable
A common mistake is assuming that a company with no staff, or a dormant company, does not need to file. If the IRD has issued you a BIR56A, you must return it. The NIL filing obligation is unconditional.
Stay Ahead of Your Employer Reporting Obligations
The Annual Employer's Return is one of the most universal compliance requirements for every business operating in Hong Kong. Missing the deadline, omitting employees, or filing incorrect information all carry real financial and legal risk. Using the IRD's eTAX platform and the IR56 Forms Preparation Tool from 1 March each year makes the process straightforward. If you have questions about your employer's return obligations or need assistance with IR56 filings, our team is here to help.
Yes. If the IRD issues you a Form BIR56A, you are legally required to return it — even if you have no employees, the business has not started, or has already ceased operations. Simply tick the "NO" box on the form to submit a NIL return. Failure to file can still result in a penalty.
Form BIR56A for the year ended 31 March 2025 was issued on 1 April 2025. The filing deadline was 2 May 2025 — one month from the date of issue. Note that the Block Extension Scheme does not apply; the one-month deadline cannot be extended.
For the 2024/25 tax year, you must file an IR56B for any employee who is: (a) single and earned HKD 132,000 or more; (b) married, regardless of income; (c) part-time, regardless of income; or (d) a director, regardless of income. If in doubt, include the employee — omission carries more risk than inclusion.
Late or non-filing can result in a fine of up to HKD 10,000. The IRD may also raise a tax assessment without applying deductions or exemptions. In serious cases, prosecution is possible and company officers may be personally liable. Early filing — ideally via eTAX — is strongly recommended.
Yes. The IRD's eTAX platform supports online submission of BIR56A, IR56B, IR56E, IR56F, and IR56G. The IR56 Forms Preparation Tool is available from 1 March each year, allowing employers to prepare IR56B data files before the BIR56A is even issued. Electronic filing is recommended for accuracy and instant acknowledgement.
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or accounting advice. Tax laws and regulations are subject to change. Please consult a qualified professional before making any decisions based on this content.
