A Brief Study On IR56 Forms: Essential For Employers In Hong Kong 

What Are IR56 Forms in Hong Kong? 

IR56 forms are official tax documents that companies in Hong Kong must give to the Inland Revenue Department. These forms show how much money their workers make and what benefits they get that can be taxed. There are different types of IR56 forms, like IR56B, IR56E, IR56F, and IR56G. Companies use these forms to report yearly earnings new employees, workers who quit, and employees leaving Hong Kong. These forms play a key role in making sure everyone follows the rules for Salaries Tax. 

If you’re an employer in Hong Kong, you can’t escape IR56 forms. These documents play a central role in the city’s salaries tax reporting system and help the Inland Revenue Department (IRD) keep tabs on employees’ earnings and perks. 

Turning in these forms late, with mistakes, or not at all can result in fines extra charges, and unwanted scrutiny. On the flip side, submitting them correctly keeps your company in line with the law, builds employee trust, and makes tax time smoother for everyone involved. 

This guide aims to give Hong Kong employers a straightforward organized look at: 

• What IR56 forms are 

• The different types of IR56 (IR56B, IR56E, IR56F, IR56G, etc.) 

• When companies need to use each one and by what date 

• Handy tips to manage IR56 reporting in 2025–2026 

What Are IR56 Forms in Hong Kong? 

IR56 forms are official documents that bosses must give to the Inland Revenue Department to report their workers’ pay, extras, and taxable perks. 

They help the IRD: 

• Figure out individual Salaries Tax 

• Check reported income against worker tax returns 

• Keep tabs on job starts, ends, and people leaving Hong Kong 

For employers, IR56 forms serve as the official record showing they’ve met their legal reporting requirements under the Inland Revenue Ordinance. 

Why IR56 Forms Matter to Employers 

Poor management of IR56 forms can result in: 

• Fines and penalties if you file late or 

• Higher chance of audits and questions from the IRD 

• Holdups in employees receiving their tax assessments or tax clearance 

• Damage to your reputation as an employer who follows the rules 

Filing IR56 forms and on time is essential for: 

• Following the law 

• Running year-end payroll without issues 

• Helping employees file their personal taxes 

IR56 forms show the IRD your payroll. When your IR56s are well-organized and correct, you’re telling a good tax compliance story. 

The IR56 World: Who’s Involved 

Three main groups play a part in the IR56 process: 

• Employer – makes and sends IR56 forms 

• Employee – the person whose pay and perks are on the report 

• IRD – gets the forms and uses them to figure out Salaries Tax 

A strong in-house payroll and HR system ties all three together . 

Types of IR56 Forms and When You Need Them 

Different IR56 forms serve various purposes. It’s crucial to use the correct form when needed. 

1. IR56B – Annual Employer’s Return of Employee’s Remuneration 

Purpose: To report an employee’s total income and benefits for a year of assessment (1 April to 31 March). 

When to use it: 

• For each employee (including directors) who worked at any time during the year and whose income is subject to Salaries Tax. 

What it includes: 

• Salary and wages 

• Bonuses and gratuities 

• Commissions 

• Allowances (e.g. housing, travel) 

• Share-based benefits where applicable 

• Employer-provided benefits that are taxable 

Deadline: You have one month to submit this form after you get the annual Employer’s Return (BIR56A) from the IRD, which arrives in early April. 

2. IR56E – Notification of Commencement of Employment 

Purpose: This form lets the IRD know about a new employee who might have to pay Salaries Tax. 

When you use it: 

• When you bring on a new employee who’ll need to pay Salaries Tax such as someone earning more than the basic allowance, or a regular worker. 

Deadline: You have 3 months from the day the employee starts working to submit this form. 

3. IR56F – Employee Ceasing Employment (Staying in Hong Kong) 

Purpose: To report details of an employee who stops working but stays in Hong Kong, or leaves for a short time. 

When it’s used: 

• When an employee quits, gets fired, or retires and remains in Hong Kong. 

Deadline: 

• At least 1 month before the last day of work (or as soon as possible if that’s not doable). 

Keep in mind: IR56F applies to job endings that don’t need tax clearance for moving out. It doesn’t require holding back final payment. 

4. IR56G – Employee Leaving Hong Kong (Tax Clearance) 

Purpose: This form lets the IRD know when a worker plans to exit Hong Kong or for a long time and to start the tax clearance process. 

When people use it: 

• If an employee intends to leave Hong Kong for a while (over a month) and might not come back to work for the same company. 

Main things employers need to do: 

• Submit IR56G at least 1 month before you expect to leave. 

• Hold back all payments (like wages, bonuses, commissions, vacation pay, etc.) from when you file IR56G until the IRD gives you a “Letter of Release”. 

Remember: paying too soon could make the employer responsible for unpaid taxes. 

5. Other IR56 Forms (IR56M, IR56A etc.) – Quick Look 

While IR56B/E/F/G are the most common, others include: 

• IR56M – This form is used to report payments to people who aren’t employees (like commissions paid to agents or consultants). 

• BIR56A – This is the cover sheet that the IRD sends out. It goes with the batch of IR56B forms, which make up the Annual Employer’s Return. 

Companies need to know which form fits which kind of payment or work relationship. 

Step-by-Step: How to Submit IR56 Forms 

Step 1: Get All the Right Employee Info 

Before you start on any IR56, make sure you have: 

• The person’s full name and HKID or passport number 

• Where they live 

• When they started and stopped working (if they’ve left) 

• All the money they got paid, including extras and perks 

• Info about MPF or ORSO contributions, if that applies 

A central HR and payroll system makes this easier. 

Step 2: Fill Out the Right IR56 Form with Care 

When you file or on paper: 

• Check all numbers and dates twice 

• Make sure taxable benefits and allowances are included 

• Use the right form for the situation (like IR56F or IR56G) 

Even small errors can lead to IRD questions, hold-ups, or having to file again. 

Step 3: Submit through e-Filing or on Paper 

Employers can: 

• Use the e-Tax / e-filing services (better for speed, accuracy, and keeping track), or 

• Send paper forms to the IRD 

For yearly IR56B filing many companies now opt to file to handle big staff numbers and cut down on manual mistakes. 

Step 4: Watch Deadlines and Save Proof 

For each IR56 form: 

• Put the legal deadlines on a payroll calendar 

• Save copies (digital or paper) of all forms you send in 

• Keep backup docs (like payroll summaries, benefits breakdowns) for at least 7 years, as the IRD expects 

Smart Ways to Handle IR56 Forms 

1. Use a Payroll Rules Calendar 

Add dates for: 

• Issuing and filing BIR56A / IR56B 

• Due dates for IR56E for new hires 

• IR56F / IR56G notices when employees leave 

• MPF deadlines and yearly tax reporting duties 

This lowers the chance of missing filings and getting fines. 

2. Link HR, Payroll and Accounting Systems 

Using online HRMS and payroll programs that connect: 

• Employee main data 

• Time & attendance 

• Payroll math 

• Tax and MPF parts 

Lets you **create IR56 numbers ** and cut down on manual entry and checking. 

Making IR56 reports part of payroll is one of the best ways to stay ready for audits and follow rules with little work. 

3. Keep Up with IRD Guidelines 

Tax laws, deductions, and explanations may shift over time. Employers should: 

• Look over IRD notices and revisions each year 

• Watch for budget news affecting income tax or perks 

• Adjust internal rules and payroll setups as needed 

This matters even more if you give intricate perks, like stock options or overseas work stints. 

4. Educate Your HR and Payroll Staff 

Make sure your team grasps: 

• What each IR56 form aims to do 

• The due dates and tax holding rules (for IR56G) 

• How to tackle unusual situations (e.g. temporary transfers part-year work, two jobs at once) 

Regular training helps prevent expensive errors and maintains consistency when employees leave. 

5. Get Expert Help for Complicated Situations 

If you: 

• Have workers in different countries 

• Run several companies 

• Provide intricate benefit packages 

Think about teaming up with a tax expert or payroll pro to check your IR56 strategy. This can help you stay compliant and make your processes more efficient. 

Key Points 

• IR56 forms are required for Hong Kong employers and serve as the main source of employee income reporting for Salaries Tax. 

• Various IR56 types (IR56B, IR56E, IR56F, IR56G, IR56M) are used in different cases — it’s crucial to use the right one. 

• Filing late or can result in fines, hold ups in tax clearance, and increase the risk of audits. 

• Employers should keep accurate employee records, use integrated HR/payroll systems, and stick to a structured compliance schedule. 

• Taking charge of IR56 responsibilities helps safeguard your business, aids employees’ tax filing, and shows responsible management. 

Want to make IR56 and payroll compliance easier? Check out how Info-Tech’s all-in one HRMS and Payroll Software can do the math for IR56, handle filing steps, and keep records for your Hong Kong company. 

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