Form IR56B: annual return of employee remuneration

What Is Form IR56B Employee Remuneration Return

Every Hong Kong employer must file Form IR56B for each employee. This annual return reports an employee's total earnings, benefits and pension contributions for the year of assessment. The Inland Revenue Department uses this return to assess the employee's salaries tax liability.

The employer submits Form IR56B with the overall employer's return, Form BIR56A. This combined filing covers all employees employed during the year. One Form IR56B is required for each employee.

Form IR56B Hong Kong

Form IR56B is Hong Kong's standard notification for employee remuneration. The Inland Revenue Department issues the form annually as part of the employer filing cycle. Complete one form per employee, reporting salary, bonuses, commissions, housing benefits, share option gains and any other taxable income.

The form requires the employee's full name, Hong Kong identity card number or passport number, dates of employment, and a breakdown of all remuneration paid. You must also state the amount of mandatory provident fund contributions made.

Annual Return of an Employee's Remuneration

The return covers the Hong Kong year of assessment, from 1 April to 31 March of the following year. Report all remuneration paid or payable during that period, regardless of when the employee actually received it.

This includes salary, wages, fees, commissions, bonuses, gratuities, perquisites, allowances and any other benefits in kind. Housing benefit is reported separately, as it affects the employee's salaries tax calculation differently from cash income.

IRD Form IR56B

The Inland Revenue Department provides Form IR56B as a prescribed form on its website. Download it from the IRD forms index to complete manually or electronically. If you file through the Business Tax Portal, you may submit Form IR56B data electronically instead of on paper.

The IRD cross-references the information on Form IR56B against the employee's individual tax return, Form BIR60. Discrepancies between the employer's return and the employee's return may trigger an enquiry.

Employer Filing for Employee Hong Kong

Filing Form IR56B for each employee is a legal obligation under the Inland Revenue Ordinance. You must file for every employee who worked during the year, including part-time staff, directors and expatriates. The only exception is for employees whose total annual remuneration is below the IRD's reporting threshold.

You must also file Form IR56E when a new employee starts, Form IR56F when an employee ceases employment, and Form IR56G when an employee is about to leave Hong Kong. These notifications are filed separately from the annual return.

IR56B and BIR56A

Form IR56B and Form BIR56A are filed together as a single employer submission. Form BIR56A is the employer's return that summarises the total number of employees and confirms the attached Forms IR56B are complete and accurate. The IRD sends a pre-printed BIR56A each year with the corresponding number of IR56B forms.

Complete and return both forms by the statutory deadline. Late filing of the employer's return carries penalties under the Inland Revenue Ordinance. Retain copies of all filed Forms IR56B for at least seven years after the year of assessment.