Hong Kong Employer’s Return 2026 Opens Today: Are You Ready?

Hong Kong Employer’s Return 2026 opens with the Inland Revenue Department issuing Form BIR56A to employers across the city. The annual filing requires businesses to report employee remuneration for the year ending March 31 and remains a key compliance obligation for all employers.

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If you employ staff in Hong Kong, the Employer’s Return is one compliance deadline you cannot afford to miss. Every April, the Inland Revenue Department (IRD) issues Form BIR56A to registered employers, requiring them to declare remuneration paid to employees during the year ended March 31. For the 2025–26 assessment cycle, the same rules apply, and the IRD continues to encourage online filing through its eTAX platform.

This guide walks you through everything you need to know, including who must file, what forms to use, key deadlines, how to file electronically, and what happens if you don’t comply.

What is the Employer’s Return?

The Employer’s Return is an annual declaration that every employer in Hong Kong must submit to the IRD. It reports remuneration, including salaries, wages, bonuses, housing benefits, and other taxable payments, paid to employees during the corresponding tax year (April 1 to March 31).

The return consists of two main documents:

• Form BIR56A – the cover form summarizing your submission
• Form IR56B –  one form per employee, listing their individual income details

Together, these forms feed into the IRD’s process for issuing individual salaries tax assessments to your employees. Think of it as your annual payroll disclosure to the government.

Who needs to file?

You are required to file Form IR56B for any employee (or pensioner) whose total income for the year exceeded the threshold set out in Note 1(a) of the Notes and Instructions for Form BIR56A. This includes:

• Full-time and part-time employees
• Employees stationed overseas who still receive remuneration from your Hong Kong entity
• Employees who worked in Hong Kong for any period during the year
• Pensioners receiving payments from your company

What counts as employee income?

When completing Form IR56B, you need to report all taxable remuneration. This is broader than just monthly salary. It includes:

• Basic salary, wages, and allowances
• Bonuses and gratuities
• Housing benefits (rental value or reimbursements)
• Holiday journey benefits
• Back pay, arrears of pay, and contract gratuities
• Termination payments
• Share awards and share option gains

If your employee received a housing benefit, the IRD calculates a “rental value” based on a percentage of their other income, unless the actual rent paid is higher. Make sure your records clearly distinguish between the different income categories on Form IR56B.

Deadlines you need to mark

The IRD typically issues Form BIR56A on April 1 each year. For the year ended March 31, 2026 (assessment year 2025–26), here are the critical dates:

Event	Deadline
Form BIR56A issued	April 1, 2026
Deadline to file BIR56A + IR56B	May 1, 26 (within 1 month of issue), unless extension granted.
IR56E (new hire)	Within 3 months of the hire date
IR56F (cessation)	1 month before the last working day
IR56G (departure from HK)	1 month before departure

If you need more time, you can apply in writing for an extension. Your request must include your employer’s file number, the company name, the year of assessment, the additional time needed, and the reasons for the extension. Extensions are not guaranteed, so apply early.

How to file: paper vs. electronic

The IRD accepts both paper and electronic submissions, but strongly encourages employers to file online through its eTAX platform. Here is what each option looks like:

Option 1: Paper filing

Download or print Form BIR56A and Form IR56B from the IRD website (ird.gov.hk). You can also request forms by post using Form IR6163, by email, or via the 24-hour Fax-A-Form service (2598 6001).

All forms must be printed on white A4 paper. The BIR56A and each IR56B must be signed by the same authorized person. Photocopies, fax copies, and scanned copies are not accepted. Only original signatures work.

Completed forms can be delivered to the IRD in person or by post.

Option 2: Online mode (fully electronic)

The cleanest option. Log in to the IRD’s Business Tax Portal (BTP) or Individual Tax Portal (ITP) using your authorized signer’s credentials (iAM Smart+, a recognized personal digital certificate, or an ITP password).

The two portals targeted different employers:

• Business Tax Portal (BTP) – for corporations, partnerships, and other entities. BTP administrators can manage employers’ matters and grant access to authorized users.
• Individual Tax Portal (ITP) – for sole proprietors filing under their own eTAX account. ITP users can also file for a corporation if they have the Employer’s File Number/Business Registration Number and Employer’s Identification Code (ERIC).

You can find the ERIC printed on the Form BIR56A, IR6036A, or IR6036B issued by the IRD.

Before logging in, you can also access the IR56 Forms Preparation Tool via “View All Services” on the eTAX login page. This enables payroll staff to prepare and export data files without needing the authorized signer’s credentials.

Once signed in, you can submit:

• BIR56A without IR56B (if you have no employees to report)
• IR6036B without IR56M
• A data file containing up to 5,000 sets of IR56 records (B/E/F/G/M)

Each data file can hold up to 2,000 sets of records. For larger payrolls, prepare multiple files using the IR56 Forms Preparation Tool or pre-approved self-developed software.

Option 3: Mixed mode

Designed for organizations that want to separate the data-upload task from the formal signing step. Here’s how it works:

• A designated staff member uploads the IR56 data file via eTAX, while no login from the authorized signer required at this stage.
• The system generates a Control List with a QR code and transaction reference number.
• The authorized signer then signs the one-page Cover Page of the Control List and submits it to the IRD, together with the signed BIR56A (if filing IR56B or IR56M records annually).

Payroll records: What you must keep

As an employer, you are legally required to maintain payroll records for all employees and to keep those records for at least seven years. This includes:

• Personal particulars for each employee
• Full remuneration details (broken down by income category)
• Dates of commencement and cessation of employment
• Records of any overseas assignments

Accurate records make completing the annual return much faster, and they are your first line of defense if the IRD queries any figures.

Penalties for non-compliance

The IRD takes employer reporting obligations seriously. Filing incorrectly, late, or not at all can result in significant penalties under the Inland Revenue Ordinance. These can include:

• Fines for late or non-filing of Form BIR56A
• Penalties for incorrect returns (whether deliberate or negligent)
• Prosecution in serious cases

The IRD’s Penalty Policy is published on its website. If you realize you have made an error in a previously filed return, you can submit a supplementary or replacement form, or a written notification of amendment. Addressing corrections proactively is far better than waiting for the IRD to find the discrepancy.

Step-by-step checklist for 2026 filing

Use this checklist to stay on track for your April-May 2026 submission:

Hong Kong Employer’s Return 2026: A Checklist
☐	Confirm receipt of Form BIR56A from the IRD (issued on April 1, 2026)
☐	If not received by mid-April, request a copy using Form IR6163
☐	Update personal particulars for all employees
☐	Compile payroll data for April 1, 2025 – March 31, 2026
☐	Categorize income correctly for each employee (salary, housing, options, etc.)
☐	Prepare IR56B for each reportable employee
☐	Decide on filing method: Paper, Online Mode, or Mixed Mode
☐	For electronic filing, use the IR56 Forms Preparation Tool or pre-approved software
☐	Submit BIR56A + IR56B by May 1, 2026 (or earlier if filing for employees about to leave HK)
☐	Provide each employee with a copy of their completed IR56B
☐	Check for any IR56E (new hire), IR56F (termination), or IR56G (departure) forms due
☐	Retain all payroll records for at least 7 years

Frequently asked questions

What if I lose or damage my Form BIR56A?

You can request a duplicate Form BIR56A directly from the IRD’s website at any time. Alternatively, submit Form IR6163 by post, email, or fax to request a replacement.

Do I need to file for an employee who resigned mid-year?

If you have already submitted Form IR56F for that employee for the same year of assessment, you do not need to file Form IR56B for them to avoid duplication. The IR56F covers the income paid up to the cessation of employment.

What if an employee is leaving Hong Kong permanently?

You must submit Form IR56G at least one month before their expected departure date. You need to submit two copies. After submission, the IRD will issue a tax clearance letter to the employee, and you will be required to withhold their final pay until the IRD confirms all taxes are settled.

Can I amend a return after filing?

Yes. Submit a supplementary, replacement, or amended Form IR56 with corrected information. You can also provide written notification of the amendment to the IRD.

My company uses its own payroll software. Can I still file electronically?

Yes, provided your software has been pre-approved by the IRD. Pre-approved self-developed software can generate data files for Forms IR56B, E, F, G, and M. Check the IRD website for the list of approved software providers and how to apply for approval.

Reporting non-employee payments

The Employer’s Return extends beyond employees on a company’s payroll, but not all non‑employee reporting obligations fall within the annual Employer’s Return cycle. Employers should distinguish between filings that are submitted alongside Form BIR56A each April and those that are transaction‑based and must be filed separately during the year.

Local Non‑incorporated service providers (Forms IR56M / IR6036B)

Payments made to local non‑incorporated individuals, such as sole proprietors, freelancers, agents, or subcontractors, are generally reported as part of the annual Employer’s Return exercise.

Employers are required to file Form IR56M, typically together with Form BIR56A, where annual payments exceed the following thresholds:

• Consultants, agents, brokers, freelance artistes, sportsmen, or writers: more than HK$25,000 per year
• Subcontractors: more than HK$200,000 per year

Where multiple payees or supplementary details are involved, an additional form (IR6036B) may be required. These reporting obligations are linked to the Employer’s Return cycle and are commonly prepared at the same time as employee remuneration filings.

Non‑resident professionals (Form IR623P)

By contrast, reporting obligations for non‑resident professionals do not form part of the annual Employer’s Return.

When an employer engages a non‑resident individual (other than as an employee) to provide services or exercise a profession in or in connection with Hong Kong, the employer must file Form IR623P to report the sums payable. This filing is event‑driven, rather than annual, and is closely tied to the Inland Revenue Department’s deemed assessment and tax withholding requirements.

In practice, employers are generally required to submit Form IR623P before payment is made. Waiting until the April Employer’s Return filing window would usually be too late and could expose the company to compliance risk.

Non‑resident entertainers and sportsmen

Separate and more stringent rules apply to payments made to non‑resident entertainers and sportsmen. These obligations operate outside the Employer’s Return framework and typically involve advance notification, tax retention, and payment‑specific filings.

Employers should refer to the IRD’s dedicated guidance on non‑resident entertainers and sportsmen to determine the applicable forms, timelines, and withholding arrangements, as these requirements are not satisfied through the annual Employer’s Return.

Bottom line

The Employer’s Return is a straightforward process if you stay organized. Keep clean payroll records throughout the year, watch out for mid-year trigger events (new hires, terminations, and departing employees), and take advantage of eTAX to make annual filing faster and paperwork-free.

If in doubt, the IRD’s FAQ page for employers is a practical first stop. For complex payroll situations, such as cross-border assignments, share option schemes, or non-resident payments, you are advised to consult a licensed tax representative who is familiar with Hong Kong’s salaries tax rules.

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