Employer’s Return forms, commonly recognised as the BIR56A form and IR56B forms in Hong Kong, are a key tax compliance requirement for companies. These documents are the tax return form for employers and must be prepared carefully and submitted on time to the Inland Revenue Department (IRD).

What are the IR56B and BIR56A forms (Employer’s Return)?

In Hong Kong, employer tax return forms serve as an official record of the income and benefits received by employees and directors during the tax year.

The BIR56A form and IR56B form are used to report these earnings and benefits to the IRD, helping the authorities assess each individual’s tax position and determine their tax liability accurately.

Employers are generally required to report all income paid to employees and directors – whether the work was performed in Hong Kong or overseas, and regardless of the individual’s tax residency status – using the two employers return forms.

BIR56A

The BIR56A form acts as a cover letter to all IR56B forms that an employer would submit. It summarises the number of IR56B forms completed, the employer’s company details, the name of the officer compiling the return, and whether the submission is made in hardcopy, online, or mixed mode.

IR56B

The IR56B form provides detailed information on each employee or director. It sets out personal details, position in the company, and a full breakdown of salary, benefits, pensions, and other remuneration.

By accurately reporting this information in the IR56B form, employers help maintain transparency and ensure the correct amount of tax is assessed.

When to Submit the Employer’s Return?

The IRD usually issues the BIR56A form and IR56B forms on the first working day of April each year. Submissions are typically due within one month of the issue date.

To stay on top of compliance, employers should mark this period in their calendars.

Hong Kong’s fiscal year of assessment runs from 1 April to 31 March. Generally, all Hong Kong companies receive the employer’s return forms from the IRD, whether or not they currently employ staff, have just started operating, or have ceased operations during the year.

That said, some Hong Kong companies – such as those with no remuneration payment in the past or with inactive operations – may not receive the Forms from the IRD every year.

However, if remuneration was paid or accrued to employees or directors and the company did not receive the BIR56A form, it must still prepare and submit the relevant IR56B forms voluntarily to the IRD.

Newly incorporated companies typically receive their first BIR56A form around 3–6 months after filing their initial audit.

How to Prepare the IR56B and BIR56A Forms

• Gather the necessary information: Collect all data regarding employees’ earnings, benefits, and personal details for that year’s assessment.
• Verify the accuracy: Double-check the information in the IR56B form for any inconsistencies or errors. Ensure that income and benefits have been accurately and completely reported.
• Special benefits: If housing benefits, share options, share awards, severance payments, or termination payments are provided to employees or directors, extra attention is needed when completing the IR56B form.
• Reporting obligations: Even if employees or directors intend to claim their income as tax exempt under salaries tax, employers must still report the remuneration in the IR56B forms, since the IRD decides whether exemptions apply.
• Cross-check with accounts: The IRD may compare figures in the IR56B form with the audited financial statements and may raise queries if discrepancies appear.

Seeking professional advice is recommended if there is any uncertainty. A taxation expert can provide clarity and ensure the accuracy of the forms.

Submitting the Employer’s Return Online

The IRD provides an online platform for the submission of Employer’s Return forms (ER e-Filing Services). There are 2 modes of submission: 1. Online mode and 2. Mixed mode.

1. The online mode is fully online and requires an eTAX Account by an Authorized Signer, so they can submit and sign online.
2. The mixed mode allows employers to designate a person to upload a data file containing the IR56 records via the ER e-Filing Services without the login of the Authorized Signer’s eTAX Account. After the file upload, a Control List will be generated by the system, which subsequently needs to be signed and submitted by the Authorized Signer.

More information on the ER e-Filing Services can be found on the website of the IRD.

Timely and accurate submission of the employers return is essential for compliance. Proper preparation of the IR56B form and BIR56A form not only fulfils statutory obligations but also reduces the risk of IRD enquiries and penalties, benefitting both the employer and the employee.

HKWJ Tax Law can help

Keeping track of the documents required for compliance with Hong Kong’s corporate governance rules can be challenging. Among these, the Employer’s Return – the IR56B forms and the BIR56A form – are a crucial piece of the puzzle.

If you are unsure how to report certain income or benefits, or if the paperwork feels overwhelming, our team at HKWJ Tax Law is here to help.

We can guide you through the process, review your completed employer’s return, and ensure everything is submitted on time so you can focus on running your business.

Contact us today for professional support with your BIR56A and IR56B forms via the form below or WhatsApp +852 5110 3944.