Employee's Income

• Income
  • Income chargeable to Salaries Tax
  • FAQ
  • Related Information
    • Departmental Interpretation and Practice Note No. 10
      The Charge to Salaries Tax
    • Departmental Interpretation and Practice Note No. 16
      Salaries Tax : Taxation of Fringe Benefits

 Income Chargable to Salaries Tax

The following types of income are chargeable to Salaries Tax and should be reported by the employer :

• Salaries, wages, leave pay, directors fee, commission, bonus.
  (item 11(a) to (e) of IR56B)
• Back pay, end-of contract/other gratuities, ex-gratia payments, terminal awards. (item 11(f) of IR56B)
• Certain payments from Retirement Schemes. (item 11(g) of IR56B)
• Salaries Tax paid by employer. (item 11(h) of IR56B)
• Education benefits. (item 11(i) of IR56B)
• Gain realized under share option scheme. (item 11(j) of IR56B)
• Tips paid by customers. (item 11 (k) of IR56B)
• Holiday Journey Benefits. ( item 11(k) of IR56B)
• Pension (item 11 (l) of IR56B)
  Example :
  If the employee retired on 30.11.2023 and received pension afterwards – report on his IR56B
  - salaries from 1.4.2023 to 30.11.2023 under item 11 (a), and
  - pension from 1.12.2023 to 31.3.2024 under item 11 (l).
• Payment in lieu of notice accrued on or after 1 April 2012.
  (item 12(f) of IR56F and item 11(f) of IR56G)
• The provision of a place of residence to the employee. (item 12 of IR56B)
• Income received by the employee from a non-Hong Kong company, whether paid in Hong Kong or elsewhere. (item 11 and item 13 of IR56B)