Form IR56B Annual Return of Employee Remuneration Hong Kong: Filing Guide and Requirements
File Form IR56B for each employee with the IRD. Learn what remuneration to report, the deadline and penalties for errors.
IR56B at a glance
- Official title
- Employee's Remuneration, filed with BIR56A
- Issued by
- Inland Revenue Department
- Deadline
- With the employer's return
We link the issuing authority's own index rather than hosting a copy, because the form is revised there and an out-of-date copy is worse than none.
Purpose of Form IR56B
Form IR56B is the annual return an employer files with the Inland Revenue Department (IRD) for each employee who received remuneration during a year of assessment. It accompanies the employer’s consolidated return, BIR56A. Use the Form IR56B Annual Return of Employee Remuneration Hong Kong to report the full-year earnings of a continuing employee, an employee who neither started nor ceased employment during the year.
Types of Remuneration to Report
Report all remuneration paid or payable to the employee during the year of assessment. The IRD expects these categories on Form IR56B:
- Salary and wages: Basic cash remuneration before any deductions, including Mandatory Provident Fund (MPF) contributions.
- Bonuses: Any discretionary or contractual bonus, including year-end and performance bonuses and commission.
- Allowances: Housing, travel, education, and other cash allowances paid to the employee.
- Perquisites: Benefits in kind provided to the employee. Common examples are use of a company car, accommodation provided rent-free or at a subsidised rate, and share awards. Report the assessable value as determined under the Inland Revenue Ordinance (Cap. 112).
- Pensions: Pension payments made by the employer to or for the benefit of the employee. Include contributions to an occupational retirement scheme that exceed the statutory limits.
The IRD publishes valuation guidance for each category. Accommodation value is calculated as 10 per cent of the employee’s total assessable income after deducting outgoings and expenses. Report perquisites at the amount the employee would be assessable on, which may differ from the cost to the employer.
Filing the Form IR56B Annual Return of Employee Remuneration Hong Kong
Complete a separate Form IR56B for each employee employed at any time during the year of assessment who falls within the scope of the BIR56A return. This includes full-time, part-time, and temporary employees. Directors of the company are employees for this purpose and must be included.
The form captures employee particulars: full name, Hong Kong Identity Card number, residential address, and the period of employment. Break remuneration down into the categories listed above. Report the amount of MPF contributions made by the employer and any salary tax paid on behalf of the employee.
IR56B Filing Deadline
The filing deadline for Form IR56B is the same as for BIR56A. The IRD issues the employer return packet, BIR56A and IR56B forms, in the first quarter of the year. The filing deadline is one month from the date of issue of the return. An extension of up to two weeks is available if the employer files electronically through the Tax Representative Portal.
The exact deadline is printed on the BIR56A form itself. Check the date carefully. The issue date varies by taxpayer, so do not rely on a fixed calendar date. Late filing carries a fixed penalty under Cap. 112. The IRD may also impose additional penalties for non-compliance.
Employee Annual Return Hong Kong IRD: Consequences of Incorrect or Late Filing
An incorrect or incomplete Form IR56B carries significant consequences. The IRD may:
- Assess the employee on estimated income if the return is not filed. This often produces a higher tax liability for the employee.
- Impose a penalty on the employer under section 80(2) of the Inland Revenue Ordinance (Cap. 112). The maximum penalty is HK$10,000, with a further penalty of three times the tax that would have been undercharged had the error not been corrected.
- Commence prosecution for wilful evasion or aiding and abetting tax evasion. Heavier fines and imprisonment apply.
Late filing without a reasonable excuse attracts a fixed penalty. The IRD may also disallow deductions claimed against profits tax for remuneration paid to employees whose returns were not filed on time.
The 60-Day Rule for Salaries Tax
The 60-day rule is a key concept in Hong Kong salaries tax affecting what remuneration an employee must report on their individual tax return (BIR60). It does not directly affect Form IR56B, but the employer must be aware of it when reporting remuneration for employees who perform services outside Hong Kong.
Under the 60-day rule, an employee who spends 60 days or fewer in Hong Kong during a year of assessment is not subject to salaries tax on income derived from services performed outside Hong Kong. The employer must still report the full remuneration on Form IR56B. The IRD then determines the assessable amount based on the employee’s presence in Hong Kong. The rule applies to the calendar year of assessment, not to each individual trip.
Transition to EMPF and Its Effect on IR56B
The introduction of the eMPF platform does not change the filing requirements for Form IR56B. The eMPF system does, however, require employers to submit contribution and employee data electronically to the MPF trustee. This data overlaps with the remuneration information reported on IR56B. Ensure the remuneration figures reported on IR56B are consistent with the contribution data submitted to the eMPF platform. Any discrepancy may trigger an enquiry from the IRD or the Mandatory Provident Fund Schemes Authority (MPFA).
The eMPF platform does not replace the IR56B filing. The IRD continues to require a separate annual return through the Tax Representative Portal or paper filing. Employers who file electronically through the Tax Representative Portal can use the iXBRL tagging feature to attach financial statements and tax computations.
Where to Obtain and File Form IR56B
Form IR56B is available on the Inland Revenue Department’s website at https://www.ird.gov.hk/eng/paf/bus.htm. The IRD issues a packet of forms to each employer each year. If the employer operates through a tax representative, the forms are available through the Tax Representative Portal at https://www.ird.gov.hk/eng/tax/bus_epf.htm.
File BIR56A together with all completed IR56B forms for the relevant employees. Retain copies of all filed returns for at least seven years. The IRD may require them during a tax audit.
How to fill out Form IR56B
Page one of the official form. Every field named below appears on it in the same order.
1. Employer’s File No., Name, Sheet No.
Enter the file number exactly as shown at the top left corner of the address box on Form BIR56A. Then print the employer’s business name (a personal name is not sufficient). The Sheet No. is for continuation; if you use more than one IR56B for the same employer, number them sequentially (e.g., “1 of 3”). Tick only one box: “Additional” (reporting extra income for an employee already filed), “Replacement” (correcting an earlier form), or leave both blank if this is the original return. If you tick Replacement, enter the sheet number being replaced and the date that earlier form was submitted.
2. Name of Employee or Pensioner
Fill in the employee’s surname, given name, and title (delete Mr/Mrs/Ms/Miss as inapplicable). Provide the full name in Chinese if the employee has a Chinese name.
3. Identity Card / Passport
- (a) H.K. Identity Card Number - This field must be completed. Enter the number exactly as shown on the card (including the check digit in brackets, e.g., “A123456(7)”).
- (b) If the employee has no HKID, enter the passport number and place of issue here.
4. Sex
This box must be completed. Enter M (male) or F (female).
5. Marital Status
Enter 1 for Single/Widowed/Divorced/Living apart, or 2 for Married. Do not leave blank.
6. Spouse Details (if married)
- (a) Full name of spouse.
- (b) Spouse’s HKID number or passport number and place of issue - only if known.
7 & 8. Addresses
Item 7: residential address of the employee. Item 8: postal address only if different from item 7.
9. Capacity in which employed
Describe the employee’s role (e.g., “Sales Manager”, “Clerk”). Do not use job titles like “staff”.
10. Period of Employment
Fill the start and end dates covering the year 1 April 2025 to 31 March 2026. If still employed at end of year, end date is 31/03/2026. Use DD/MM/YYYY.
11. Particulars of Income
For each income type (a) through (l), enter the period the income relates to (DD/MM/YYYY to DD/MM/YYYY) and the amount in HK$, excluding cents. A common mistake is to enter a single year total without a period; the period must match when the income accrued.
- (k) For “Any other Rewards, Allowances or Perquisites”, state the nature in the left column (e.g., “Housing allowance”).
The Total row must equal the sum of (a) to (l).
12. Place of Residence Provided
This box must be completed. Enter 0 if no accommodation provided, 1 if provided. If 1, complete the table: address, nature (House, Flat, etc.), number of rooms, period provided, and all four rent columns (Rent Paid by Employer, by Employee, Rent Refunded to Employer, to Employee). The values must tie to item 11(k) if applicable.
13. Non-Hong Kong Entity Payment
This box must be completed. Enter 0 if the employee was not paid by a non-HK entity, 1 if yes. If 1, state the entity’s name, address, and amount (if known). The amount must also be included in item 11.
14. Remarks
Use for explanations, e.g., if replacing a form, note the reason.
Signature
The form must be signed by the employer or an authorised person. Print name, designation, date, and affix the employer’s official chop. A copy of the completed IR56B must be given to the employee.
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Sources
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