Hong Kong payroll compliance is governed by the Inland Revenue Department (IRD) and the Mandatory Provident Fund (MPF) Authority. Employers must manage MPF contributions and annual income reporting obligations.
Hong Kong does not impose employer-withheld monthly income tax.
Mandatory Provident Fund (MPF) contributions
Salary and bonus reporting
No monthly payroll tax withholding
Incorrect MPF calculations on bonuses
Late IR56 filings
Poor payroll record management
MPF contributions
Annual Employer’s Return (IR56 forms)
Employee income reporting
Automated MPF contribution calculations
Accurate annual income reporting
Centralised payroll records for audits
No. Employers report employee income annually. Employees pay provisional and final tax directly to the IRD.
Yes. MPF contributions are mandatory for eligible employees, subject to minimum and maximum income levels.
Yes. Bonuses are subject to MPF contributions unless exempted under specific conditions.
MPF submissions and annual Employer’s Returns (IR56 series).
Hong Kong requires precise MPF calculations and timely submissions. HR Forte automates compliance, reduces errors, and gives companies a seamless way to manage payroll in one of Asia’s most dynamic markets.