• Employers Must Submit Employees’ Income Data by 1 Mar to Avoid Penalties and Prosecution 
• Timely Submission Key to Simplify Tax Filing for 2 Million Employees

Employers have a statutory obligation to submit their employees’ 2023 employment income information to the Inland Revenue Authority of Singapore (IRAS)  by 1 March 2024, ahead of the tax filing season. This applies to employers who are already on the Auto-Inclusion Scheme (AIS), or have 5 employees or more in 2023. Non-compliance is an offence under the Income Tax Act.

900 Employers Prosecuted, $1.1 Million in Penalties Imposed

Employers who do not file by 1 March 2024 can be fined up to $5,000, which was increased last year from $1,000 previously. Key personnel of non-compliant businesses such as company directors or partners can also be fined up to $10,000, and/or imprisonment for a term of up to 12 months.

In 2023, 1 in 10 employers on the AIS failed to file on time (i.e. late or non-submissions) despite repeated reminders. IRAS has prosecuted over 900 non-compliant employers last year, resulting in penalties exceeding $1 million.

Majority of the employers fined belonged to restaurants, food courts/ coffee shops, general contractors, wholesale trade of goods, retail trade, and beauty salons and spa services. Common reasons cited for late submissions include changes in person handling AIS, and challenges in keeping up with administrative obligations. Annex A – Essential Steps for Employers in Specific Circumstances (PDF, 16KB) details the essential steps employers can take in specific circumstances.

Simplified Tax Filing for Over 2 Million Employees

AIS streamlines the tax filing process for employees by automatically incorporating their income information in their tax returns, reducing the risk of underreporting or unintentional errors. This year, over 2 million employees whose employers are on the AIS will benefit from the convenience of pre-filled tax returns or No-Filing Service (NFS), eliminating the need for manual input of income information. It is critical for employers to submit their employees’ income information on time. Failure to do so results in missing data on pre-filled tax returns, leading to inaccurate tax bills and delayed tax assessments for employees.

To check if an employer is on AIS, visit Search AIS Organisation.

110,000 AIS Employers to File by 1 Mar 2024

About 110,000 employers are expected to participate in AIS this year, the highest since the programme’s inception. IRAS reminds all employers with 5 employees or more in 2023, or who have previously joined AIS, to submit their employees’ employment income information by 1 March 2024. These employers would have received a letter from IRAS in January 2024 informing them of their AIS obligations.

Employers with fewer than 5 employees who are not in AIS and are interested to participate on a voluntary basis may do so in next year’s filing (i.e. YA 2025) by registering for AIS via myTax Portal between 1 April 2024 and 31 December 2024.

Employers can submit their employees’ employment income records via eligible payroll software directly to IRAS or online via myTax Portal. More details on filing seamlessly from software can be found at go.gov.sg/iras-sffs.

Common AIS Filing Errors and Voluntary Disclosure Programme

Employers must ensure the submission of complete and accurate employment income information for their employees to IRAS, as this data will be used to calculate their employees’ tax bills. Annex B – Common AIS Filing Errors Made By Employers (PDF, 16KB) details the common AIS filing errors made by employers.

Submitting inaccurate employee income information is an offence and may result in a penalty of up to two times the amount of tax undercharged. Employers are encouraged to voluntarily disclose any past errors or omissions in their employees' information immediately, for reduced penalties under IRAS’ Voluntary Disclosure Programme. More details on the Voluntary Disclosure Programme can be found at go.gov.sg/iras-iitvdp.

Inland Revenue Authority of Singapore