All working adults have to file our income tax each year, even if we end up not having to pay any income tax for the year.
To make it easier for both employees and the Inland Revenue Authority of Singapore (IRAS) to ensure that everyone files their employment income accurately, the Auto-Inclusion Scheme (AIS) allows employers to submit the employment income information of their employees.
This is then automatically included in the employees’ income tax assessment. Employees will not be able to edit the information submitted by their employers to IRAS. They can add other sources of income that are derived outside of their employment.
If you are a business owner in Singapore and you are not already participating in the Auto-Inclusion Scheme (AIS), it’s worth noting that from YA2021 onwards, participating in the AIS has been compulsory for employers with 6 or more employees, or if you have received the “Notice to File Employment Income Of Employees Electronically under the Auto-Inclusion Scheme (AIS)”
Submission of the AIS starts from 6 January and the due date is 1 March each year. IRAS encourages employers to submit by 10 February to avoid last-minute rush.
How To Submit The Auto-Inclusion Scheme (AIS) Form?
You can submit your AIS on the IRAS website or through your payroll software API, where you need to check with your vendor on the steps to take. Here’s the list of AIS Payroll Software Vendors for the Auto-Inclusion Scheme (AIS).
On the IRAS website, login to your business tax portal. You can sign in using CorpPass.
Read Also: Guide To CorpPass And How To Set It Up For Your Company And Employees
Step 1: Register for the Auto-Inclusion Scheme (AIS)
On the main category page, go to Employers > Register for AIS. If your company has already registered, go straight to Submit Employment Income Records.
Step 2: Submit Employment Income Records
You will need to create a new submission. If there were errors in your previous submission, you can make amendments.
After this, you can start adding employees’ records.
Step 3: Add individual employee’s details
If you are doing this on your own, it may be a little tedious especially, if you have more than a handful of employees. That said, it’s pretty much just a straightforward form-filling exercise. Just ensure that you fill in the information correctly. You can also authorise a third party/staff such as your company’s corporate secretarial to submit the details on your behalf.
Here are a few points worth noting.
– Compulsory information you will need include your employees’ identification number, full name and date of birth. You will need to fill in their salary for the year, any bonus earned and deduction for CPF, CDAC/ECF/MBMF/SINDA donations and any life insurance premiums deducted through salaries. So, make sure you have this information on standby if you are doing the submissions on your own.
– Submissions are also required for company’s director (including non-resident director), board members receiving board/committee member fees, pensioner and any employees who have left the organisation but who was in receipt of income in 2024.
– Form IRA8 (the form above) is compulsory for all full-time and part-time resident employees. It also includes non-resident employees who are based overseas and required to render service in Singapore during the year.
You may also be required for to submit additional forms like the Appendix 8A, Appendix 8B and Form IR8S.
Additional Submission: Appendix 8A, Appendix 8B and Form IR8S.
Appendix 8A: You need to fill in this form in addition to the IR8A for employees who were provided with benefits-in-kind. These would include accommodation and related benefits and car benefits. More details on Appendix 8A can be found here.
Appendix 8B: You need to fill in this form in addition to the IR8A for employees who derived gains or profits from Employee stock option (ESOP) plans or other forms of Employee Share ownership (ESOW) plans. More details on Appendix 8B can be found here.
Form IR8S: This form must be completed if you have made excess CPF contributions on your employees’ wages and/or have claimed or will claim refund on excess CPF contributions. More details on Form IR8S can be found here.
Read Also: 10 Types Of Employee Payments (Apart From Salary) That Businesses Need To Pay CPF For
Step 4: Confirm Details For Submission
Assuming you have the information on hand, the submission is rather simple as all you need to do is to fill in the details of your employee’s income, deductions (e.g. CPF, donations) and any in-kind benefits that they may have received (e.g. transport allowance, entertainment allowance).
Once you have done so, you need to confirm the details and submit the forms.
Do note that AIS employers do not need to issue hardcopy Form IR8A and the appendices to their employees.
However, employers who are not under the AIS for Employment Income have to provide the hardcopy Form IR8A and appendices (where applicable) to their employees by 1 March each year to file their income tax returns. Such employers need not submit the forms to IRAS.
What Happens If You Do Not Submit AIS By 1 March
Employers on AIS should note that it is mandatory to file by 1 March 2025. Those who do not do so can be fined up to $5,000. Company directors or partners can also be fined up to $10,000, and/or face imprisonment for a term of up to 12 months.
For YA 2024, 1 in 10 employers on the AIS were either late to file in or failed to file in. IRAS prosecuted 654 repeat offenders and collected penalties exceeding $790,000 in 2024. Repeat offenders would have received multiple letters, emails and/or calls from IRAS to remind them of their filing obligations. Majority of the employers who failed to file on time were in the food and beverage, wholesale trade and construction industries.
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