When must I notify the IRD that I have hired a new employee (IR56E)?
Within 3 months of the employee starting work, an employer must give the IRD Form IR56E for a new employee who is likely to be chargeable to salaries tax. Give the employee a copy of the form. A fine of up to HK$10,000 can follow if you fail to file without reasonable excuse.
Section 52(4) of the Inland Revenue Ordinance requires an employer to give the IRD, in writing and within 3 months of engagement, the particulars of any new employee who is likely to be chargeable to salaries tax. The IRD form for this is IR56E.
Practical steps
- Complete IR56E with the employee's identity, start date, pay and benefits (including housing).
- File it with the IRD within 3 months of commencement; electronic filing is available.
- Give the employee a copy.
- Record it in payroll so the annual IR56B at year-end is consistent.
Why it matters. The IRD uses these forms to open or update the employee's tax record. Skipping them is an offence for which the employer can be prosecuted; the maximum fine under section 80(1) for employer reporting offences is HK$10,000.
Related duties
- Annual employer's return (BIR56A with IR56B for each person).
- IR56F when employment is ending, and IR56G if an employee is leaving Hong Kong for good or for a substantial period.
- Keep payroll records for at least 7 years.
For a new company hiring its first staff, this notification and MPF enrolment are often the first compliance tasks.
Legal basis
- Inland Revenue Ordinance (Cap. 112), s.52(4)
- Inland Revenue Ordinance (Cap. 112), s.80(1)
Sources
Applies to YA 2025/26 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Do I have to tell the IRD I am chargeable to tax if I have not received a return?Yes. Anyone chargeable to profits, salaries or property tax who has not received a return must notify the IRD in writing within 4 months after the end of the basis period for that year of assessment. A person who ceases a business must notify the IRD within one month of ceasing.
- When will a new Hong Kong company receive its first profits tax return?The IRD generally issues the first Profits Tax Return about 18 months after the date of incorporation. A first-time recipient has 3 months from issue to file. If you are chargeable to tax and receive nothing, you must notify the IRD in writing within 4 months after the end of the basis period.
- What is the filing deadline for the Hong Kong profits tax return?The due date is printed on page 1 of the return, normally one month from issue. First-time recipients get 3 months, and e-filers under the e-notice get 2 months. Represented taxpayers usually get later dates under the Block Extension Scheme, depending on the accounting year-end.
- How does the Block Extension Scheme work for profits tax returns (N, D and M codes)?With a tax representative, the due date depends on your accounting year-end code. For 2025/26: N code no extension; D code (December) 31 August 2026 on paper, 2 October 2026 if e-filed; M code (1 January to 31 March) 30 November 2026 on paper, 30 December 2026 if e-filed. The D and M dates were later extended from 17 August and 16 November.
- What is the deadline for the employer's return (BIR56A and IR56B) in Hong Kong?The IRD normally issues the Employer's Return (BIR56A) on the first working day of April, and you must file it within one month of issue together with a Form IR56B for each employee. For the year ended 31 March 2026 the forms were issued on 1 April 2026. Employers must keep payroll records for at least 7 years.