Employer’s Tax Return In Hong Kong

Employer’s Return Hong Kong: What Is The Employer’s Return Form (IR56B)?

The Employer’s Return of Remuneration and Pensions is popularly known as the employer’s return Hong Kong. The IR56B is one of the forms employers receive annually from Hong Kong’s Inland Revenue Department (IRD), sent out in April.

The IR56B is used to determine employee salaries, aiding in tax assessment for the previous year. In keeping with this theme, the IR56B will contain information about the employee, payment information and nature of employment.

You are required to provide any payment information relating to all your employees. Fringe benefits, bonuses, allowances, overseas income and any other payment from the company must be disclosed in the form.

Any employer with a registered business in Hong Kong is mandated to fill out this form. You will be required to fill an IR56B for everyone in your employ. The details expected in the form include:

• Employee ID details
• Employee address
• Residential address
• Marital status
• Standard salary
• Bonuses, incentives and financial gifts

In keeping with the IRD’s mandate of providing accurate information, your company must maintain employee payroll records. The payroll records serve as proof that all the information filled out in the employer’s return is accurate. 

To protect your company from penalties, verify all payroll records are intact and accurate before filing. Once you are set to file, you have two options: online submission or in-person submission.

Employer’s Return Hong Kong: 3 Ways To Submit Your Return

1. Online Submission

The IRD has an online portal dedicated to the internet submission of forms known as eTax. The first thing you need to do is create an account on this platform. The company’s authorized signatory must create the account and will fill out and sign all returns.

Members of the company qualified to be authorised signatory include: Sole Proprietor, Director, manager, company secretary, Precedent partner, and Principal officer. The principal officer is usually determined based on the type of company. 

You can either fill the form directly online using direct keying or upload a downloaded copy of the IR56B after filling it out. You can also create a data file personally, using a data tool of your choice, including a self-developed tool, provided it meets departmental specifications.

Notable approved software tools acceptable to the IRD include IR56 Forms Preparation Tool (including IR56B and IR56F forms) and IRD IR56B Software – IR56B. 

Companies with employees over 800 can still submit individual IR56B forms online. You cannot, however, submit more than 800 data files.  

2. Physical Submission

You can physically submit your company’s IR56B forms at the IRD offices closest to you. Forms sent out for filing or those downloaded on the IRD’s website are acceptable.

The form will need to be signed by the appropriate parties before submission. The IRD accepts both softcopy and hardcopy submissions.

3. Mixed Submission

The IRD also has a mixed submission option, requiring an uploaded IR56B form and an in-person submission. This newly introduced method was first implemented in 2018, designed to allow unauthorized company signatories to complete the employer’s return Hong Kong.

Here, an employer appointed by the authorized signatory will upload the data files and generate a form which the authorized signatory will sign. The signed form will be submitted in person at the IRD office. 

Employer’s Return Hong Kong: What Happens If You Don’t File Employer’s Return On Time?

The IRD is responsible for all filing of the employer’s return Hong Kong and is strict on promptness. Failure to file on time or providing incorrect details will attract serious penalties.

The standard penalty for a late employer’s return filing or no submission is an HKD10,000 fine. 

Employer’s Return Hong Kong: How Can We Help?

The employer’s return Hong Kong is compulsory for all companies in Hong Kong and carries serious penalties for a breach.

New companies will only be eligible to start filing returns eighteen months after they are incorporated. Keep all payroll records in this period, as they will be needed when filing starts. 

Premia TNC provides consultancy services to new employers or those seeking help with the employer’s return Hong Kong and more. We also offer other taxation services like filing returns on your behalf, preparing payroll records, and serving as tax representatives.

Our services are designed to make the tax process easier for our employers, allowing you to focus solely on your business.