Employer's Return in Hong Kong

Employer's Return in Hong Kong

The Employer's Return is a crucial requirement for businesses operating in Hong Kong that employ individuals. It serves as a comprehensive report of the salaries, benefits, and other remuneration provided to employees throughout the tax year.

What type of contributions need to be reported?

The Employer's Return encompasses various types of salaries, benefits, and allowances provided to employees, including:

  • Salary and Wages: Regular earnings paid to employees.
  • Bonuses and Commissions: Additional compensation based on performance.
  • Housing Benefits: The value of housing benefits provided by the employer.
  • Perquisites: Non-cash benefits or perks given to employees.
  • Share Option Gains: Gains from exercising share options provided by the employer.

All payments to local individuals, even if they are non-incorporated service providers, must be reported in the ER.

The following categories require reporting: 

  • Consultants, agents, brokers, and freelance artists, sportsmen, writers, etc. – payments in excess of HK$25,000 per annum
  • Sub-Contractors – payments in excess of HK$200,000 per annum 

In the Employer Return, you should also report: 

  • Company Directors, regardless of whether they are the sole director and/or sole shareholder of the company.
  • Employees assigned to work overseas.
  • Employees about to leave HK (IR56G) or leaving the company (IR56F).

When is the deadline for filing the Employer's Return?

The reporting period covers a specific tax year, which usually aligns with the fiscal year from April 1 to March 31. The return should be completed and submitted to the Inland Revenue Department (IRD) on or before May 31 of the following year.

Failure to submit the Employer's Return by the specified deadline or providing inaccurate information may result in penalties and legal consequences. It's essential to ensure the accuracy and timeliness of your submission.


The Employer's Return plays a vital role in the tax declaration process for both employers and employees in Hong Kong. By accurately reporting salaries, benefits, and allowances, businesses contribute to the efficient calculation of Salaries Tax and ensure compliance with tax regulations.

To streamline the process and avoid errors, contact us today and maintain accurate records throughout the tax year.

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