What should I know about completing the Employer’s Tax Return (IR56 form)? What should I do if I make a mistake?

If you are an employer and you receive a tax return, you will need to complete and submit an Employer’s Return and an Employer’s Tax Return (IR56AB) for your employees. How do I write this tax return? What are the consequences of late filing? This article will break it down for you.

What information is required to complete the IR56AB?
Generally speaking, when completing the IR56AB, employers are required to fill in the following information for the employees concerned.

Personal information (name, address, Hong Kong Identity Card number or passport number).
Nature of employment (full-time or part-time).
the position of employment
the contract of employment
the period of employment
the amount of remuneration
records of employee and employer contributions to MPF schemes.
Non-cash and other incidental benefits (e.g. quarters).
Marital status and personal data of spouse (if married).
If the employee’s personal data is updated or if the terms of employment have changed, the employer is required to inform the Inland Revenue Department and provide the relevant information for updating.

Incidentally, employers are obliged by law to keep records of employees’ salaries and wages and to report them to the Inland Revenue Department (IRD) for at least seven years, including the “Employer’s Tax Return (BIR56A)”.

Can anyone sign the Employer’s Tax Return (Form IR56)?
In addition, although employers are busy and someone else may fill in the “Employer’s Tax Return”, only “authorised signatories” can sign the “Employer’s Tax Return” (Form IR56) according to the Inland Revenue Department’s guidelines, including the following persons.

The proprietor of a sole proprietorship business.
the first partner of a partnership business
a director of a corporation
Company secretaries or managers.
an investment manager (for open-ended fund-type companies only)
The provisional liquidator or liquidator.
a principal officer of a body of persons.
What can I do if there is an error in my Employer’s Tax Return (Form IR56)?
In the unfortunate event that there is an error in the Employer’s Tax Return (Form IR56) that needs to be corrected, the employer can either: (i) amend the information by written notice; or (ii) submit another amended paper form to the Inland Revenue Department.

Employers who have already applied for the e-Filing service can also submit an Additional / Amended / Supplementary IR56 form through the e-Filing service.

What are the consequences of late filing of the Employer’s Tax Return (IR56)?
According to the Inland Revenue Department (IRD)’s guidelines, employers who fail to submit the required Employer’s Tax Return (Form IR56), including late filing, non-filing or misrepresentation, are liable to prosecution under section 80(1) of the Inland Revenue Ordinance, with a maximum fine of HK$10,000 (normally HK$1,200 for a first offence) and a court order to A court order must be made within a certain period of time.

The above information is for reference only. If you have any questions or enquiries regarding tax returns (personal tax returns, corporate tax returns, accountant tax returns), you are welcome to contact our professional advisors and we will provide you with a free quotation and consultation service in due course.