Employers under IRAS' Auto Inclusion Scheme must submit 2024 employment details by 1 March 2025

Employers who do not meet the submission deadline can be fined up to S$5,000.

More than two million employees in Singapore will enjoy a smoother tax filing experience for this year, as a result of the Auto-Inclusion Scheme (AIS) by the Inland Revenue Authority of Singapore (IRAS).

This initiative requires employers to submit their employees' income details electronically, ensuring that enrolled employees receive pre-filled tax returns, or benefit from the No-Filing Service or Direct Notice of Assessment for Year of Assessment (YA) 2025. 

About 120,000 employers are part of this scheme this year, and they must submit accurate 2024 income information by 1 March 2025 ahead of the tax filing season.

The submission requirement applies to all employers that are already on the AIS even if they have less than five employees in 2024, and employers that started having five or more employees in 2024.

Employers who do not comply and file by 1 March 2025 may face fines of up to S$5,000, while key personnel of non-compliant businesses could be fined up to S$10,000 and/or even jailed for up to a year, under the Income Tax Act.

In 2024, about 11,000 employers failed to meet the deadline, affecting 140,000 employees. A total of 654 repeat offenders were prosecuted in 2024, with penalties collected exceeding S$790,000.

IRAS has identified common errors in tax submissions, including:

• Omitting taxable benefits in kind (cash/ non-cash)
• Omitting employee income/ benefits outside the payroll system
• Under-reporting of stock/options gains

Submitting inaccurate employment income information for employees is an offence and may result in a penalty of up to twice the amount of tax undercharged. To avoid severe penalties, employers are encouraged to promptly correct any past errors or omissions by voluntarily disclosing them under IRAS’ Voluntary Disclosure Programme, which will reduce penalties.

Images / IRAS Media release