Hong Kong HR Guide

Onboarding

Daily Routine

Annual Wrap-up

On Termination

Annual Tax Filing for you Employees' Income

What is IR56B?

IR56B (namely Employer's Return of Remuneration & Pensions) is the form you have to submit to the IRD, within 1 month from the date of issue of BIR56A. Normally, BIR56A together with the form of IR56B will be sent to you as an employer by IRD, on the first working day of April.

Sample BIR56A by IRD:
http://www.ird.gov.hk/eng/pdf/bir56a_completion_e.pdf

You may complete hard copies of IR56B for each of your staff members by filling in their personal details and salary details. Alternatively:

  1. You may download the software from IRD for the preparation of IR56B. By using the software, XML data file can be generated.
  2. You may also choose self-developed software which is approved by IRD, such as Backstage, to generate the XML data file by capturing the salary details which are already in the HR system.

Sample IR56B by IRD:
http://www.ird.gov.hk/eng/pdf/ir56b_completion_e.pdf

Particular of Income in IR56B

What should be Included in the Filing?

Please note that most income items are taxable in Hong Kong, except for some compensation items exempted by Inland Revenue Ordinance, and for Severance Payment, Long Service Payment and Jury Fees.

You may refer to the reference below regarding taxable salary items:

http://www.gov.hk/en/residents/taxes/salaries/salariestax/chargeable/

Another exception is based on the territorial concept. Income arising in Hong Kong is taxable while derived from overseas employment is not. Nevertheless, whether the income item has been taxed by foreign jurisdiction is not a factor of consideration:

http://www.gov.hk/en/residents/taxes/salaries/salariestax/exemption/

In HR system such as Backstage, you can define whether a payment item is taxable, and under which tax particulars by some simple clicks, which helps you to generate the tax filing of IR56B in April with ease.

How to submit the IR56B?

Hard copies can be sent to IRD directly. For XML file:

  1. It can be submitted to the IRD by storing into CD/DVD/USB device. Together with a signed control list.
  2. You can also upload the XML data file, if 5,000 records or less, through the eTax Mixed Mode service of IRD. You may refer to the link below for further information:

http://www.ird.gov.hk/eng/tax/err.htm

Reference:

Online demo on filing of employer's return through eTax Mixed Mode:
https://www.ird.gov.hk/eng/demo/erf/ersubmit_mixed_56b/index.htm>

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