Definition and Purpose
Form BIR56A serves as the formal notification and summary by an employer of all earnings paid to employees (and pensioners, if any) during the year. The BIR56A itself does not list individual incomes; rather, it is a declaration that the employer is submitting the required IR56B forms for each relevant employee. In practical terms, BIR56A is the cover form that confirms an employer has prepared the annual returns for all employees, summarizing the submission . The IR56B forms attached to it detail each employee’s remuneration (salary, bonuses, allowances, benefits, pensions, etc.) for the year. Together, these forms enable the IRD to cross-check and accurately assess each employee’s tax liability.
The purpose of BIR56A is both compliance and completeness: it is how an employer officially “files” their employee income returns. By signing the BIR56A, the company certifies that all required employee income information is reported. This mechanism is essential in a system (like Hong Kong’s) where employers assist in the tax reporting process for salaries. It helps prevent tax evasion and ensures transparency of what employees have earned.
Who Must File and When
All employers in Hong Kong who have paid any form of remuneration to employees must file a BIR56A annually . This requirement applies to companies of any size – from large corporations to small businesses – as well as non-profits, schools, and any organization that hires staff. Even overseas companies with employees working in Hong Kong must comply. Essentially, if you had anyone on payroll (full-time, part-time, or even directors receiving fees) in the tax year, you are obliged to file an employer’s return.
The IRD’s tax year runs from April 1 to March 31. The IRD typically issues the BIR56A forms to employers on April 1 each year (either by mail or electronically via eTAX) for the just-ended tax year . Employers then have one month to complete and submit the BIR56A along with all IR56B forms, i.e. usually by April 30 . For example, for the year ended 31 March 2025, BIR56A would be issued on 1 April 2025 and due by end of April 2025. Even if an employer does not receive the form (lost mail, etc.), they are still responsible for obtaining and filing it by the deadline .
In addition to the annual filing, there are event-driven filings: if an employee joins, leaves, or is about to leave Hong Kong, separate notification forms (IR56E for commencement, IR56F for cessation, IR56G for departure from Hong Kong) must be filed, usually within tight deadlines (e.g. one month’s notice before an employee leaves Hong Kong) . These are in addition to the annual BIR56A/IR56B cycle.
Compliance and Penalties
Accurate and timely filing of BIR56A is a legal obligation under the Inland Revenue Ordinance. Failure to file, late filing, or filing incorrect information can lead to penalties . The IRD may impose fines on an employer for late submission, and in serious cases (willful neglect or fraud), prosecution can result. Therefore, employers must maintain good payroll records throughout the year to facilitate completing the return.
When filing, the employer either submits a paper BIR56A (with physical IR56B forms) or uses the IRD’s electronic filing system (eTAX) to upload the data. Larger employers often use the electronic method for efficiency. After filing, employers should distribute copies of the IR56B to their employees as well, so employees know what has been reported and can use the information to file their own tax returns.
In summary, BIR56A is a critical annual tax reporting form that every Hong Kong employer must handle. It represents the company’s declaration of employees’ earnings for tax purposes. Proper compliance avoids legal trouble and ensures employees’ taxes are assessed correctly. HR or payroll departments usually take charge of preparing the BIR56A and IR56Bs, often with payroll software or professional assistance to meet the strict timeline each year.
