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 Employee assigned to work overseas or to work in Hong Kong

Company carrying on business in Hong Kong is obliged to file Form IR56B for all its employees, irrespective whether the employee rendered services in or outside Hong Kong, so long as their total income exceeded the limit as laid down in Note 1(a) of Notes and Instructions for form BIR56A. You may provide additional information in the remarks column (item 14 of the Form IR56B); e.g. the employee stationed in the Beijing office and had visited Hong Kong for less than a total of 60 days during the relevant year of assessment.

Where an employee of a company is partly paid by a non-Hong Kong subsidiary because of the services rendered outside Hong Kong for that subsidiary, the Hong Kong company should report in item 11 of the Form IR56B the aggregate amount of income paid by the Hong Kong company and the non-Hong Kong subsidiary. In addition, the amount paid by the non-Hong Kong subsidiary should be stated again in item 13 in Form IR56B. An employer should report the full remuneration accrued to an employee irrespective of whether the respective employee is entitled to claim exemption from Salaries Tax or not. An employee who wish to claim full / partial exemption of income or relief, may lodge his claim in his Tax Return- Individuals.

Sometimes a person may be assigned or seconded to the Hong Kong office by the non-Hong Kong parent company. The employer to be named in item 1 of Form IR56B will be the Hong Kong company.

It may not be uncommon that employees are paid in non-Hong Kong currencies. Since Salaries Tax is charged in Hong Kong dollars, the sums reported in Form IR56B should also be expressed in Hong Kong dollars. For the average exchange rates of major currencies, please click here. Alternatively, you may obtain it through the 24-hour Fax-A-Form Service by dialing 2598 6001. If you require an exchange rate for other currency, you may use any reasonable externally sourced average exchange rate for that currency and use it consistently.

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 Employee about to leave Hong Kong

See

 

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  Employer's Obligations

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 Completing and submitting your employer's return and notification forms

  1. How to obtain Employer's return and Notification forms

    Normally, we will issue BIR56A (Employer’s Return) to employers on the first working day of April each year.

    If there are persons who were within the scope of Note 1(a) of the Notes and Instructions for Form BIR56A and you do not receive BIR56A by mid of April or the original forms have been lost or damaged, you may contact to the IRD for the Employer’s Return by completing the form IR6163. The duly signed form can be submitted to the Department by mail or by fax. We would process your case once received your request.

    If you need more IR56 forms, you may download the Form IR56B, IR56E, IR56F, IR56G, IR56M and IR6036B at IRD website or obtain these IR56 forms through the 24-hour Fax-A-Form Service (2598 6001).
  2. How to complete and when to submit the employer's return

    You should read carefully the Notes and Instructions for Form BIR56A and the Notes and Instructions for Form IR56B. If you have no employees or pensioners chargeable to Salaries Tax, please tick the box 'NO' in the BIR56A. To avoid duplication in reporting employee's income, IR56B is not required for those employees for whom an IR56F or IR56G has already been submitted before.

     
    How to Complete When to Submit Documents to be submitted to the IRD
    Specimen of Completed BIR56A
    Specimen of Completed IR56B
    Notes and Instructions for Form BIR56A
    Notes and Instructions for Form IR56B

    (ER e-filing Services is also available)

    Within 1 month from the date of issue of BIR56A. The duly completed BIR56A
    (a) 1 copy of IR56B in respect of each employee OR
    (b) A CD / DVD / USB storage device containing the data of all IR56Bs together with a signed control list.
    Specimen of Completed IR56E

    (ER e-filing Services is also available)

    Within 3 months of commencement of employment of an employee. 1 copy of IR56E in respect of each employee
    Specimen of Completed IR56F

    (ER e-filing Services is also available)

    1 month prior to the cessation of employment of an employee. 1 copy of IR56F in respect of each employee
    Specimen of Completed IR56G

    (ER e-filing Services is also available)

    At least 1 month before the expected departure date of an employee. 2 copies of IR56G in respect of each employee
    Specimen of Completed IR6036B
    Specimen of Completed IR56M
    Notes and Instructions for Form IR56M

    (ER e-filing Services is also available)

     

    Together with BIR56A. The duly completed IR6036B
    (a) 1 copy of IR56M in respect of each person OR
    (b) A CD / DVD / USB storage device containing the data of all IR56M together with a signed control list.
    Note:  (1)  After filing, the employer should provide 1 copy of the completed form (IR56B/56E/56F/56G/56M) to the employee or person concerned.
      (2)  You can also obtain the above specimens through the 24-hour Fax-A-Form service (2598 6001).


    Points to Note when making annual employer's return

    (a) Prepare payroll information

    • For 1 April to 31 March of the following year.
    • Update personal particulars of each employee.
    • Ascertain the annual remuneration for each employee in accordance with the categorization of income for reporting on IR56B.

    (b) Decide mode of filing

    (i) Both BIR56A and IR56B in Paper Form and then by physical delivery mode to the IRD

                        [Note:  (1)  Each IR56B paper forms has to be duly signed by the same responsible person who signed the BIR56A
      (2)  The IR56B form must be those provided by the IRD or downloaded from the IRD website or obtained from the Fax-A-Form Service. The download form and fax-a-form must be printed on white plain A4 size paper; and the printed information must be complete and legible.]

    OR

    (ii) BIR56A in paper copy, plus soft copy of IR56B records on a CD-ROM / DVD-ROM / USB storage device with a duly signed Control List and then by physical delivery mode to the IRD

                        [Note:  (1)  The soft copy of IR56B records must be prepared by the IRD IR56B Software; or self-developed IR56B software approved by Inland Revenue Department.
      (2)  The storage device containing soft copy of IR56B records submitted to the IRD will be retained as source documents and NOT be returned.]

    OR

    (iii) By way of ER e-filing Services

    (c) How to complete BIR56A

    (i) Filing form BIR56A (Employer’s Return) in paper form

    • Tick the box “YES” or “NO” to indicate whether there were any persons who were within the scope of Note 1(a) of the Notes and Instructions for Form BIR56A and reportable in Forms IR56B.

    • If there were such persons, state the number of IR56B Forms submitted in paper format or via storage device or upload via the Employer’s Return e-Filing Services (Mixed Mode) in the appropriate items.

      • The number of paper IR56B submitted should be reported in item (1).
      • The number of IR56B records submitted via a storage device (e.g. CD-ROM / DVD-ROM / USB storage device) should be reported in item (2) (NOT the number of storage device).
      • The number of IR56B record uploaded via the Employer’s Return e-Filing Services (Mixed Mode) should be reported in item (3) (NOT the number of data file uploaded).
    • Must be signed by the Proprietor for a sole proprietorship business, Precedent Partner for a partnership business, Company Secretary / Manager / Director / Investment Manager (only applicable to a corporation that is an open-ended fund company) / Provisional Liquidator / Liquidator for a corporation, Principal Officer for a body of persons or Agent for a non-resident person.

    • Must submit a duly signed Control List, if you are filing IR56Bs via storage device or through the Employer’s Return e-Filing Services (Mixed Mode).

    • The printed copies of the IR56B records are NOT required to be submitted if the IR56B records are submitted via storage device or uploaded via the Employer’s Return e-Filing Services (Mixed Mode).

    OR

    (ii) Filing form BIR56A (Employer’s Return) through the Employer’s Return e-Filing Services

    • Please click here for details.

    (d)The duly signed BIR56A and IR56B forms must be submitted together.

    • Ensure all the forms are duly completed and signed.
    • If the IR56B records are submitted via storage devices or uploaded via the Employer’s Return e-Filing Services (Mixed Mode), the signed Control List must also be submitted. The person who signs the BIR56A must also sign on every page of the Control List.
    • Originally signed BIR56A, IR56B forms and Control List must be submitted.
    • Photocopies / fax copies / scanned copies are NOT acceptable.
  3. Extension to submit annual Employer’s Return

    If employers need to apply for an extension to submit the BIR56A, applications for the extension must be in writing with your employer’s file number, the company’s name, the year of assessment concerned, the additional time required and details of the reasons in support stated for our consideration.

  4. Submission of Employer's Return and other notifications in computerized format

    You can prepare IR56 Forms in computerized format through the followings means (please click the relevant links to learn more about the different preparation methods):

  5. Electronic Filing of Employer's Return (BIR56A/IR56B, IR6036B/IR56M, IR56E/F/G)
  6. Supplements / Amendments to information previously reported

    If you wish to amend the information previously reported, you may either furnish an additional / replacement / supplementary form or a written notification of amendment.

    For details, see:

 

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 Employee's Income

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 Penalty on non-compliance

Heavy penalties may be incurred for not complying with the above obligations or for making incorrect return. For details, see

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 Payments to local persons who are non-incorporated service providers

You need to submit Forms IR56M and IR6036B to report payments made to the following local persons:

(a) Consultants, agents, brokers and freelance artistes, sportsmen, writers etc Payments in excess of $25,000 per annum
(b) Sub-contractors Payments in excess of $200,000 per annum

For further information, see

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 Payments to non-resident entertainers or sportsmen

You need to submit Form IR623 to report payments made to a non-resident entertainer or sportsman.

For further information, see

 

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 Payments to non-residents (other than entertainers or sportsmen)

You need to report payments made to a non-resident (other than entertainer or sportsman) by way of a letter and provide the following information and document(s) in connection with the non-resident:

  • Personal particulars (such as name, nationality and passport number, day-time contact telephone number, postal addresses in Hong Kong and his/her home country).
  • A copy of the contract made and the nature of service rendered.
  • The dates and amounts of payments made or expected to be made and periods covered by the payments.
  • Date of departure from Hong Kong.

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 Useful Information

See