How to prepare IR56E

To prepare the IR56E (Notification by an employer of an employee who commences employment) in electronic format according to the IRD's new Specification effective July 2025, follow this overview of the process:

1. Obtain approval from the Inland Revenue Department (IRD) to file the IR56E electronically in a computerized format. Coordinate this through your HRPro Authorized Solution Provider.

2. Define your Tax File No., Name, and Designation in the Taxation Module Setup.

3. Complete the tax-related information in the Employee Master.

4. Generate the IR56E Batch. It is assumed you generate IR56E batches monthly. If your database contains multiple employers, select the relevant employer before generating the batch.

5. Perform any amendments needed on the IR56E batch data through the IR56E Amendment function.

6. Output the IR56E data file compliant with the new Specification. Upload this data file to the IRD via the Employer’s Return e-Filing Services ("ER e-Filing Services") through eTax. Note that submission of computerized printouts or storage devices containing the data file is NOT accepted by the IRD.

7. If any amendments or corrections are required after submission, prepare and upload a new IR56E batch with the form type marked as "Replacement" through eTax.

8. Once the entire IR56E issuance cycle is completed and verified, click the Protect button on the IR56E Amendment toolbar to protect (close) the batch. Only protected batches are archived and made available in the Employee Portal's "Download IR56E" function.

9. You must provide each newly joined employee with a copy of their IR56E form. This can be done using any of the following methods:

   1. Print hard copies of the IR56E forms from the IR56E Amendment function and distribute them manually.

   2. Use the Output to Email function in the IR56E report to send the forms directly to employees via email.

   3. Implement and enable the Download IR56E function in the Employee Portal, allowing employees to access their forms online.

10. If you have multiple employers in the database, repeat steps starting from batch generation for each employer as applicable.

Please ensure that the IR56E form is submitted no later than 3 months from the employee’s commencement date of employment if the employee is or is likely to be chargeable to Salaries Tax under the Inland Revenue Ordinance. This timeline ensures compliance with IRD requirements and timely reporting of newly employed taxable employees in Hong Kong.