Employer's Return 2026/27: BIR56A, IR56B, IR56E/F/G/M Guide

The IRD issues the Employer's Return (BIR56A) on the first working day of April, and you file it with an IR56B for each reportable employee within one month. For 2026/27, expect it around 1 April 2027. During the year, file an IR56E within 3 months of a hire starting, an IR56F at least 1 month before someone leaves, and an IR56G at least 1 month before an employee leaves Hong Kong. The 2026/27 reporting threshold is HK$145,000, and non-compliance carries a HK$10,000 fine.

Last reviewed: September 2026 · Sources: Inland Revenue Department, GovHK

What the employer's return actually is

The employer's return is how the IRD learns what you paid each employee in the year of assessment, which runs from 1 April to 31 March. The IRD uses those figures to issue each employee's Tax Return – Individuals (BIR60) and to cross-check what they declare. An error on your side becomes an error on their salaries tax assessment.

The package has two layers. The BIR56A is the cover return: one per employer, signed and declaring how many IR56B forms are attached. The IR56B is the individual record: one per reportable employee, showing income by type, the period of employment, quarters provided and any share-option gains.

The obligations come from section 52 of the Inland Revenue Ordinance. The IRD summarises them in its Obligations of an Employer (IR56H) leaflet, which is worth keeping on file.

The five forms and when each is due

Give one copy of each IR56B, IR56E, IR56F and IR56G to the employee. Keep payroll records for at least 7 years, which is the IRD's general retention period.

IR56E: the new-hire notice

File the IR56E within 3 months of the employee's start date. It carries the start date, the agreed pay and any quarters provided. The IRD's own table is explicit that both the IR56E and the IR56B are required for the commencement year, so a new joiner still appears on the return at the following 31 March.

IR56F: when someone leaves

An IR56F is due not later than 1 month before the employment ends, reporting income from 1 April to the last day. Where notice is shorter than a month, file as soon as you know. Because the IR56F covers the whole year to date, you do not file an IR56B for that employee for the year in which they leave.

IR56G: when someone leaves Hong Kong

The IR56G applies when an employee is leaving Hong Kong, typically to live or work elsewhere, rather than simply leaving your company. As with the IR56F, no IR56B is needed for that year. It also triggers a withholding duty. Under section 52(7), you must not pay the employee any money or money's worth for one month from the date of the notice, or until the IRD issues a letter of release, whichever is earlier. The IRD's tax-clearance FAQ explains the process.

IR56M: payments to non-employees

The IR56M reports commission, fees or other remuneration that a company pays to local individuals or unincorporated businesses who are not its employees. The IRD expects one where the recipient is:

• a sub-contractor paid more than HK$200,000 in the year, or
• a consultant, agent, broker, freelancer or similar paid more than HK$25,000 in the year.

It is not required if the recipient is a company. Each IR56M goes in with the BIR56A together with the declaration form IR6036B. Non-resident performers and professionals have their own forms, IR623 and IR623P.

Who must be reported on an IR56B

The threshold follows the basic personal allowance. The IRD's notes to the BIR56A require an IR56B for every employee whose total income for the year exceeds the basic allowance, pro rata for anyone employed for part of the year.

For the April 2027 cycle the relevant figure is the 2026/27 basic allowance, which rose to HK$145,000 from HK$132,000. The increase was gazetted on 22 May 2026, as the IRD's 2026-27 Budget page records. The 2026/27 BIR56A notes will confirm the figure when they are issued.

Some people must be reported whatever they earn:

• directors, including those paid only directors' fees
• married employees
• part-time employees who are likely to have other chargeable income
• staff seconded to or from you
• pensioners
• former employees who realised share-option gains in the year

Worked example: the pro-rata threshold

Wing joined your company on 1 October 2026 and is still with you on 31 March 2027. She has been employed for 6 of the 12 months.

• Pro-rata threshold: HK$145,000 × 6 ÷ 12 = HK$72,500
• Her pay: HK$14,000 a month × 6 months = HK$84,000

HK$84,000 exceeds HK$72,500, so Wing needs an IR56B for 2026/27 even though her full-year pay would be modest. If she were married, she would need one regardless of the arithmetic. When in doubt, report: the IRD would rather receive an extra IR56B than miss one.

Timeline for the April 2027 cycle

1. Now to March 2027: file IR56E within 3 months of each new start, and IR56F or IR56G a month ahead of each departure.
2. By 31 March 2027: reconcile the payroll ledger for the year. Confirm bonuses, back pay and benefits in kind are coded to the right item.
3. Around 1 April 2027: the IRD issues the BIR56A. On 1 April 2026 it issued about 340,000 employer's returns, according to the Government's press release.
4. April 2027: prepare IR56B forms, and IR56M forms if relevant. Handle any April leavers, who need both a 2026/27 IR56B and an IR56F for the new year.
5. Within one month of issue: file the BIR56A with all attachments, and give each employee their copy of the IR56B.

Diary the date printed on your own return, not a date in a blog post. If the return has not arrived by mid-April, contact the IRD rather than wait.

Running payroll in JetFlow? The HR module keeps payroll, MPF and leave against one employee record and tracks your IR56 filings alongside them, so the year-end figures start from what you actually paid. See how JetFlow handles payroll.

Filing electronically

The IRD's e-services for employers run on the Business Tax Portal. There are two ways to submit.

• Online Mode: an Authorized Signer submits and signs through the business's tax portal account, using a password, a recognised personal digital certificate or "iAM Smart+".
• Mixed Mode: a designated person uploads the data file without a digital signature, and the filing is completed with the Control List the system generates, which carries the transaction reference number and a QR code.

You can prepare the data with the IRD's web-based IR56 Forms Preparation Tool, which needs no installation, or with self-developed or commercial software whose format the IRD has approved. From 1 April 2026, tax representatives using the Tax Representative Portal can also handle employer's matters for clients.

Paper IR56 forms can still be downloaded from the IRD website, but they must be printed on plain white A4 paper. E-filing checks the data before submission, which catches several of the errors below.

Common mistakes

• Leaving directors off. Directors' fees and salaries both go on an IR56B, whether or not the director works in the business day to day. A director who draws nothing but a year-end fee is still reportable.
• Treating the IR56E as optional. The 3-month clock runs from the start date, not from the end of probation. Build it into onboarding so it happens in the first month.
• Filing an IR56F late for short-notice leavers. One month's advance notice is the rule; where the employee gives less, file as soon as you know. Record the date you were told.
• Paying out an emigrating employee. Once an IR56G is filed, pay nothing further, including final salary, bonus or leave pay, until the month passes or the letter of release arrives. The withholding is a statutory duty under section 52(7), not a courtesy to the IRD.
• Miscoding income. Commission, bonus, back pay, housing and share-option gains each have their own item on the IR56B. Put a gain in the wrong box and the employee's assessment will be wrong.
• Forgetting freelancers. A freelance designer paid HK$30,000 in the year by your company needs an IR56M. Unincorporated contractors are easy to miss because they never appear on the payroll.
• Using last year's threshold. The pro-rata test for 2026/27 uses HK$145,000, not HK$132,000.

Frequently asked questions

When is the employer's return due in 2027?

The BIR56A for 2026/27 is expected to be issued on the first working day of April 2027. You must file it within one month of the issue date printed on it. Diary that date as soon as the return arrives.

Do I need to file an IR56B for a part-time employee?

Yes, if their income for the year exceeds the pro-rata basic allowance of HK$145,000, or if they are likely to have other chargeable income. The IRD's employer's return FAQ says part-time staff with other income must be reported regardless of amount. If you do not know about their other jobs, report them.

What if an employee resigns in April, just after the year end?

They were employed at 31 March, so they need a 2026/27 IR56B filed with the BIR56A. You also file an IR56F for the new year of assessment covering pay from 1 April to their last day. The IRD FAQ confirms both forms are needed.

What is the penalty for filing the employer's return late?

Failing to file or notify as section 52 requires is an offence, and the IRD's IR56H leaflet puts the fine at HK$10,000. If you cannot meet the deadline, write to the IRD before it passes, quoting your Employer's File Number.

Do I need to report payments to freelancers?

If your business is a company, yes: file an IR56M with the BIR56A for a local freelancer (not a company) paid more than HK$25,000 in the year. For sub-contractors the threshold is HK$200,000. File the declaration form IR6036B alongside.

Can I file the BIR56A online?

Yes. You file through the Business Tax Portal in Online Mode, where an authorised signer signs digitally, or Mixed Mode, where you upload and send a signed control list. The IR56 Forms Preparation Tool runs in a browser and needs no installation.

Key takeaways

• The BIR56A and IR56B forms are due within one month of issue, which is normally the first working day of April.
• The 2026/27 reporting threshold is the basic allowance of HK$145,000, pro rata for part-year staff. Directors and married employees are always reported.
• File an IR56E within 3 months of a start date, and an IR56F or IR56G not later than 1 month before a departure.
• After an IR56G, withhold all payments for one month or until the IRD's letter of release, whichever is earlier.
• Report freelancers on an IR56M: over HK$25,000 for individuals and over HK$200,000 for sub-contractors.

Most of the work sits in the year, not in April: capture start and leave dates, code income correctly and file the event-driven forms on time. See our checklist for hiring your first employee, the guide to the MPF offsetting abolition and the Hong Kong SME compliance calendar for the other dates on the employer's year. When you are ready to keep payroll and IR56 data in one place, start free with JetFlow.

This article is general information, not tax advice; check your own position with the IRD or a qualified adviser.