Under this scheme, employers submit the employment income information of their employees to IRAS electronically. This includes Form IR8A, Appendices 8A (benefits-in-kind) and 8B (Employee Stock Option Plans and Employee Share Ownership Plans) and Form IR8S (excess/voluntary contributions to and/or refund claims from Central Provident Fund). The submitted information will then be automatically included in the employees' income tax assessment.
|Who this pertains to||Employers with 7 or more employees or have received the “Notice to File Employment Income of Employees Electronically under the Auto-Inclusion Scheme”For Year of Assessment (YA) 2020 (i.e. calendar year 2019), it is mandatory for employers to register for AIS when they have 7 or more employees or receive the notice to register. Other employers are encouraged to voluntarily register for AIS. This particularly important where an employer is approaching is approaching 7 employees. The definition of employees for AIS registration purposes is wide and broadly includes any directors and anyone that you have to file a Form IR8A / Form IR21 for. A complete list of who is an employee can be found in the gazette.|
|What actions to take||Registration requirementsAny employer registering for AIS for YA 2020 must complete the registration by 31 December 2019.|
|Benefits of registering for AIS||1. Automatic information population Employee remuneration information would be automatically populated when they file their tax return. This also enables the employees to verify the information and highlight any discrepancies, if any.2. Paperless Employer not needing to issue hardcopy IR8As / supporting forms to employees.3. Easier to make amendments The online submission process makes it easier to make amendments for certain line items to the original tax return submission.|
|Penalties for non-compliance||Up to S$1,000
Employers who fail to comply with the AIS rules may be subject to a fine not exceeding S$1,000 and in default of payment to imprisonment for a term not exceeding 6 months.
How we can help
Our Employer Solutions team can assist with the registration for AIS and other employment compliance requirements.