The Hong Kong Employer's Return (BIR56A and IR56B): What to File, When, and How It Ties to Your Books

By Di Ma, Project Manager 29 OCT 2026 · 5 MIN READ

Every April, the Inland Revenue Department sends Hong Kong employers an employer's return: form BIR56A, with an IR56B for each employee showing what they were paid in the year to 31 March. It's how the IRD knows what to put on each employee's salaries tax return. Here's what to file, when, and how to make sure the return agrees with your books.

The forms at a glance

The employer forms at a glance
Form	When
BIR56A + IR56B Employer's return, with one IR56B per employee	Issued on the first working day of April; file within one month
IR56E New employee	Within 3 months of the start date
IR56F Employee leaving	At least 1 month before the last day
IR56G Employee leaving Hong Kong	At least 1 month before departure
IR56M Payments to non-employee service providers	Usually with the employer's return, above the IRD's thresholds

BIR56A and IR56B: the annual return

When it arrives: the IRD normally issues BIR56A on the first working day of April, for the year ended 31 March.
The deadline: file it within one month of the date of issue, with an IR56B for each employee who needs one (IRD guidance).
Who needs an IR56B: employees whose total income for the year was above the limit in the notes to BIR56A, whether they worked in or outside Hong Kong. You don't need one for anyone you've already filed an IR56F or IR56G for in that year.
No employees? Tick "No" on BIR56A, sign it and file it anyway.
Never received one? If you have employees to report and nothing has arrived by mid-April, ask the IRD for a return (form IR6163).

The legal basis is section 52(2) of the Inland Revenue Ordinance: when the IRD asks, an employer must report the names, addresses and full remuneration, in cash or otherwise, of the people it employs.

Directors count as employees

Section 52(3) treats any director of a company, or anyone involved in managing it, as employed by the company for these purposes. So directors' fees and a director's salary go on an IR56B like anyone else's pay. A one-person company with a paid director still has an employer's return to file.

Dividends are different: they're paid to shareholders, not for employment, and don't go on the IR56B (see paying dividends).

What to report

The full remuneration accrued to each employee in the year: salary, wages, bonus, commission, directors' fees, allowances, and benefits such as housing, even if the employee may be able to claim an exemption or relief.
Accrued, not just paid: a bonus earned in the year counts for that year.
Foreign-currency pay is converted to Hong Kong dollars at average exchange rates.
Allowances are part of employment income; reimbursements of specific business costs backed by receipts are a different matter (see expense claims).

Joiners and leavers during the year

IR56E when you start employing someone who is or is likely to be chargeable to salaries tax: within 3 months of the start date (section 52(4)).
IR56F when someone stops working for you: at least 1 month before they leave, though the IRD may accept shorter notice (section 52(5)).
IR56G when an employee is leaving Hong Kong for more than a month, for example emigrating or relocating: at least 1 month before departure (section 52(6)).

After an IR56G, hold back money due to the departing employee. Under section 52(7), the employer generally must not pay anything to them for one month after giving notice, unless the IRD consents in writing, so that any tax due can be settled first.

Consultants and sub-contractors: IR56M

Payments to people who aren't employees, such as freelance consultants, agents and sub-contractors who aren't incorporated, may also need reporting, on form IR56M, usually filed with the employer's return. The IRD's thresholds are payments of more than HK$25,000 in the year to consultants, agents and similar payees, and more than HK$200,000 to sub-contractors.

Filing

Online through eTAX, which the IRD encourages. Its IR56 Forms Preparation Tool can prepare IR56B data from 1 March each year.
On paper, with BIR56A signed.
Keep payroll records for at least 7 years.

The IRD warns that heavy penalties may follow for not filing or for an incorrect return.

Making the return agree with your books

The employer's return and the company's accounts describe the same pay, so they should agree. Before filing:

Total the IR56Bs and compare with staff costs and directors' fees in the books for the year to 31 March.
Explain the differences: a year end other than 31 March, bonuses accrued but not yet paid, benefits in kind, or employer MPF contributions booked in staff costs.
Check the joiners and leavers against the IR56Es, IR56Fs and IR56Gs filed during the year.

Both the employer's return and the accounts end up with the IRD (see filing a profits tax return), so a difference you can explain is much better than one you can't.

The Certanta client portal, income statement of the fictional demo company Harbourfront Trading Ltd for 1 January to 30 September 2026, with expense lines including bank charges, depreciation, freight and delivery, office and IT, professional and audit fees, rent and rates, staff salaries and MPF, and travel and entertainment. — Staff salaries and MPF in the demo company's income statement: the figure the employer's return should be reconciled to.

How Certanta helps

Payroll booked every month: salaries, bonuses, directors' fees and MPF, each in its own account.
The year's totals on request. "What did we pay each employee from April to March?" is a question for the AI assistant in your portal.
Accrued bonuses and directors' fees booked in the right year, so the books and the return can be reconciled (see accruals).

Frequently asked questions

When is the Hong Kong employer's return due?

The IRD normally issues BIR56A on the first working day of April for the year ended 31 March, and it must be filed within one month of the date of issue, with an IR56B for each employee who needs one.

Do I need to file an employer's return if the company has no employees?

If the IRD has sent a BIR56A, yes: tick "No" to indicate there are no employees to report, sign it and file it.

Do directors' fees go on the IR56B?

Yes. Section 52(3) of the Inland Revenue Ordinance treats a company's directors as employed by it for these purposes, so directors' fees and salaries are reported like any other employee's remuneration.

When must I file IR56E, IR56F and IR56G?

IR56E within 3 months after a new employee starts; IR56F at least 1 month before an employee leaves; IR56G at least 1 month before an employee leaves Hong Kong for more than a month (Inland Revenue Ordinance, section 52(4) to (6)).

What if I never received BIR56A?

If you have employees to report and have not received an employer's return by mid-April, ask the IRD for one using form IR6163.

Do payments to freelancers need to be reported?

Payments to non-incorporated service providers may need to be reported on form IR56M, usually filed with the employer's return. The IRD's thresholds are more than HK$25,000 in the year for consultants, agents and similar payees, and more than HK$200,000 for sub-contractors.

Payroll in the books, ready for April

With salaries, bonuses and directors' fees booked every month, the year's totals for each employee come straight from your books when the employer's return arrives.

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This article summarises section 52 of the Inland Revenue Ordinance (Cap. 112) as published on e-Legislation and the IRD's guidance on employer's returns, as at 29 October 2026. It is general information, not tax or employment advice. Follow the notes that come with your own return, and check the IRD's current forms and thresholds.