Mandatory Provident Fund (MPF) contributions are not limited to the employer’s share. When a Hong Kong company employs eligible employees, both the employer and the employee contribute based on the relevant income, with a monthly cap of HK$30,000. The employee’s portion is withheld and remitted by the employer; both contributions must be recorded in the company’s accounts and accurately reported on Form IR56B. This article outlines the contribution rules, accounting entries, and retention requirements.

The Hong Kong Inland Revenue Department typically issues the BIR56A Employer’s Tax Return to employers on the first working day of April each year. It must be returned within one month, along with each employee’s IR56B form. Even if there are no employees to report for that year, the ”None” box must be checked, the form signed, and returned. This article outlines the submission deadlines, record retention periods, and common filing errors for the five types of IR forms.

Mr. Li, who had just registered a Hong Kong company, received his first profits tax return issued in the 18th month but was unsure how long the audit period should be or how to set the fiscal year-end. He was concerned: If he sets the audit period incorrectly, will he face a late filing penalty? Chapter 622 of the Companies Ordinance 2026 and Chapter 112 of the Inland Revenue Ordinance clearly stipulate that the first audit for a new company must be conducted within a maximum of 18 months, while existing companies must undergo an audit once a year.

Ms. Chen, who came to Hong Kong under the Quality Migrant Admission Scheme at the end of 2022, is facing her first renewal this year. She thought she could “get by just by spending a few days in Hong Kong each year and submitting proof of employment,” but the Immigration Department required her to provide additional documents, including Mandatory Provident Fund records, salary tax statements, and evidence of her residence in Hong Kong—resulting in several gaps in her documentation.

Hong Kong’s ”Inland Revenue (Amendment) (Automatic Exchange of Information) Ordinance 2026” was passed by the Legislative Council in June 2026 and will take effect on January 1, 2027. Key changes include mandatory registration for reporting financial institutions, a six-year record-keeping requirement, and a penalty mechanism based on the number of financial accounts involved. This article explains the three obligations under the new regulations, the registration deadlines, and the scale of penalties, and provides four criteria for businesses to determine whether they fall within the scope of “reporting financial institutions.”