Before you start

HK-source employment income (the 'source of employment' concept, not where you bank)
A Hong Kong Identity Card (HKID) and a residential/correspondence address
An employer that files an IR56 return reporting your remuneration to the IRD

Step-by-step

1
Get registered as a taxpayer (or let your IR56 do it)
Your employer files Form IR56E within 3 months of hiring you, which flags you to the Inland Revenue Department. If the IRD doesn't issue you a return and you have taxable income, you must notify chargeability in writing by 31 July following the year of assessment. Optionally open an eTAX account (via iAM Smart or a password) to file and pay online.
Via employerWho: Your employer (IR56E); you for eTAXWithin 3 months of starting workFree
2
Receive and file your Tax Return – Individuals (BIR60)
The IRD issues the green BIR60 return in early May for the year ended 31 March. Paper returns are normally due within 1 month (by early June); e-filing via eTAX gets an automatic 1-month extension. Declare salary, claim allowances and deductions (e.g. mandatory MPF contributions up to HK$60,000/yr; home-loan interest; approved charitable donations; VHIS premiums). Sole proprietors get 3 months.
OnlineWho: You~1 month from issue (extra month if e-filing)Free to file
3
Get your assessment and pay the tax bill yourself
There is no employer withholding. The IRD computes the lower of progressive-rate tax (2/6/10/14/17% on net chargeable income after the ~HK$132,000 basic allowance) or standard-rate tax (15% to HK$5M of net income, 16% above), then issues a demand note. Pay online (eTAX/FPS/PPS), by bank, or in person. Tax is normally split into two instalments — roughly 75% in January and 25% in April.
OnlineWho: YouInstalments ~Jan and ~AprEffective rate typically well under 17%
4
Brace for provisional salaries tax (the newcomer surprise)
Your first bill bundles last year's actual tax PLUS a provisional charge for the next year — so year one can feel like paying ~1.75x a normal year. The provisional amount is credited against next year's real liability. If your income will drop sharply (e.g. you're leaving HK or going part-year), apply to hold over provisional tax — generally no later than 28 days before the due date or 14 days after the demand note, whichever is later.
OnlineWho: YouSame demand note as the main billPrepayment of next year's estimated tax

Documents you’ll need

Hong Kong Identity Card (HKID)
BIR60 Tax Return – Individuals
Employer's IR56B/IR56E and your payslips
MPF contribution records (deductible up to HK$60,000/year)
Records of deductions: home-loan interest, approved donations, self-education, VHIS premiums
eTAX account / iAM Smart login (for e-filing)

Things most newcomers don’t know

The 60-day rule can exempt short-stay visiting employees: if you render services in HK for no more than 60 days in the year of assessment, that income generally isn't charged to salaries tax.

Remote workers and regional travellers passing through HK can avoid an unexpected HK tax filing — but the day count and the 'source of employment' test are strict, so track your days.

Source: IRD — A guide to Salaries Tax (pam40e)

Hong Kong is territorial: only HK-source income is taxed, and foreign-sourced income is generally outside the net — there's no tax on overseas dividends, interest, or capital gains.

Remote workers often assume worldwide taxation like the US or many EU states; in HK, genuinely foreign-source income can be entirely tax-free, but 'source of employment' for salary is judged on substance, not just your contract's governing law.

Source: GovHK — Salaries Tax; IRD territorial principle

There's no PAYE, so nothing is set aside for you — and provisional tax means your first bill is inflated by a prepayment of next year's tax.

Newcomers routinely get blindsided by a January demand note worth roughly 1.75x a normal year. Park ~15-20% of gross from day one, and apply to hold over provisional tax if your income is about to fall.

Source: IRD — Provisional Salaries Tax

Common mistakes to avoid

Assuming tax is deducted from your salary — it isn't; you owe a lump sum (in two instalments) months after year-end, so save for it
Forgetting provisional tax — the first assessment includes a prepayment for the coming year, roughly doubling the cash hit in year one
Missing the 31 July notify-chargeability deadline if the IRD never sent you a return but you had taxable income
Leaving Hong Kong without tax clearance — your employer must withhold your final pay and you need an IR56G clearance ('sailing money') before you can be paid out and depart
US citizens assuming HK's low tax ends their US obligations — you still file with the IRS using FEIE/foreign tax credits; there is no US–HK tax treaty
Treating MPF as optional — 5% is mandatory once you earn HK$7,100+/month (capped at HK$1,500), though it's deductible against salaries tax up to HK$60,000/year