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e-Learning Module

Introduction to Auto-Inclusion Scheme for

Employment Income

Introduction to Auto-Inclusion Scheme for Employment Income

1

Contents

The Auto-Inclusion Scheme (AIS) for Employment Income ........................................................................ 2

Which employees are included in the AIS? ....................................................................................................... 3

Information to be submitted ................................................................................................................................. 4

Participating in the AIS ............................................................................................................................................ 6

The AIS Submission Process .................................................................................................................................. 7

The AIS Submission Process – Authorisation ................................................................................................... 8

The AIS Submission Process – Choosing a suitable AIS software .............................................................. 9

The AIS Submission Process – Submission of Income Information.......................................................... 11

The AIS submission process – Making Amendments to Submitted Information ................................ 12

The AIS submission process – Examples of Amendments .......................................................................... 13

How does AIS simplify tax filing for employees? ........................................................................................... 15

Summary ..................................................................................................................................................................... 16

Quiz .............................................................................................................................................................................. 17

Quiz Answers ............................................................................................................................................................. 18


2

The Auto-Inclusion Scheme (AIS) for Employment Income What is Auto-Inclusion Scheme?

Under the Auto-Inclusion Scheme, or AIS, employers submit their employee’s employment income information to IRAS

electronically. IRAS will then auto-include this information in the employee’s online tax returns and assessments.

The picture below shows the entire process:

You do not need to issue hardcopy IR8A and supporting forms if there are any, to your employees. You can just give a

statement of earnings (or a copy of the IR8A) for their reference.

Your employees will benefit from a simpler tax filing process and may enjoy the No-Filing Service (NFS) in future!


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Which employees are included in the AIS?

Employees whom you have to include in your submission:

Full-time resident employees

Part-time resident employees

Non-resident employees

Company directors (including non-resident directors)

Board Members receiving Board/Committee Member Fees

Pensioners

Employees who have left the organisation but were in receipt of income in

the reporting year (e.g. stock option gains)

Who to exclude in your submission:

X Sole-proprietors

X Partners

Why?

As Sole-Proprietors and Partners are owners of their own business, the salaries drawn from the businesses are taxable

as trade income. The income information of these sole-proprietors and partners should be excluded from your

submission.

However, the income information of partners who engaged under an employment contract with the partnership

should be included in your submission. Generally, these partners do not assume the liabilities of the partnership and

they do not have a share in the profit/loss of the partnership. They are considered employees of the partnership even

though they have the title of ‘partner’.


4

Information to be submitted You need to complete the Form IR8A and where applicable, the supporting forms such as Appendix 8A, 8B and the Form

IR8S to report the details of your employee’s remuneration each year.

Form IR8A (Mandatory Form)

Details of employee and employment income.

Form IR8S (Supporting Form)

Details of excess/voluntary CPF contribution by employer and

refund from CPF Board.


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For more information on the different form types, refer to Tax Treatment of Employee Remuneration at:

www.iras.gov.sg >Businesses > Employers >Tax Treatment of Employee Remuneration

Appendix 8A (Supporting Form)

Details of benefit-in-kind such as Housing and Accommodation

benefits, Car benefits, etc.

Appendix 8B (Supporting Form)

Details of share option gains. It refers to gains

or benefits from either Employee Stock Option

(ESOP) Plans or other forms of Employee

Share Ownership (ESOW) plans.

https://www.iras.gov.sg/irashome/Businesses/Employers/Tax-Treatment-of-Employee-Remuneration/


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Participating in the AIS IRAS progressively requires employers to participate in the Auto-Inclusion Scheme to enable employees to have an easier

tax filing process.

It is compulsory for employers with the gazetted number of employees to submit the employment income information

to IRAS electronically. The penalty for non-compliance is a fine not exceeding S$1,000 under Section 94 of the Income

Tax Act.

We encourage all employers, regardless of the number of employees, to join the AIS.

You can register for the Auto-Inclusion Scheme via myTax Portal. The closing date is on 31 Dec.


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The AIS Submission Process The submission process is divided into 3 simple steps:


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The AIS Submission Process – Authorisation

The first step is to authorise at least one person to submit electronically.

Only authorised persons with the Approver role can access “Submit Employment Income Records” e-Service to submit

information. The other role is the Preparer Role, which is optional.

The picture below illustrates the difference between an Approver and Preparer role.

A person with the Approver role is able to prepare and submit information via myTaxPortal. However, a person with the

Preparer Role is only able to prepare information via myTaxPortal. This person cannot submit the information via

myTaxPortal.

To find out more about how to authorise someone to submit electronically, refer to the Authorisation User Guide at:

www.iras.gov.sg > Business > Employers > Auto-Inclusion Scheme (AIS) for Employment Income > Authorise staff/third

party to submit

https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/Businesses/Authorisation%20Guide.pdf

https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/Businesses/Authorisation%20Guide.pdf


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The AIS Submission Process – Choosing a suitable AIS software

The second step is to choose a suitable AIS software. IRAS provides 3 software for employers to submit employment

income information to IRAS electronically.

The table below shows the different types of AIS software available for e-Submission.

a. Submit with Payroll Software

If you are using a supporting payroll software that is able to generate files in accordance to IRAS’ requirements, then

download the Validation and Submission Application. You may use this software to validate and submit the file generated

from your payroll software.

To check if your payroll software supports the AIS submission, refer to Vendors Supporting AIS Employers’ submission

at www.iras.gov.sg > Business > Employers > Auto-Inclusion Scheme (AIS) for Employment Income > Vendors

Supporting AIS Employers’ Submission

b. Submit without Payroll Software

If you record the information using vouchers/books or excel spreadsheets, etc., or if you use payroll software that does

not support AIS submission, you may use either the Submit Employment Income Records at myTax Portal (Online

Application) or the Offline Application.

For more information about the Validation and Submission Application, Submit Employment Income Records at myTax

Portal (Online Application) or the Offline Application, refer to IRAS’ website at www.iras.gov.sg > Business > Employers >

Auto-Inclusion Scheme (AIS) for Employment Income > Submit Employment Income Records.

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Vendors-Supporting-AIS-Employers--Submission

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Vendors-Supporting-AIS-Employers--Submission

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Submit-Employment-Income-Records

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Submit-Employment-Income-Records


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CPF Data Link-up Service

Employers are encouraged to register for CPF Data Link-up Service that allows IRAS to obtain employee’s data, such as

employee details, annual income and deduction, from CPF Board to pre-fill in myTax Portal under Submit Employment

Income Records (Online Application).

How does CPF Data Link-up Service works?

IRAS will obtain the CPF data that was submitted to CPF Board from Jan to Dec of the previous year, and pre-fill it in the

Submit Employment Income Records (Online Application) by the 1 Feb.

Employers will only need to prepare information that was not reported to CPF Board such as:

Income of foreign employees

Director Fees

Benefits-In-Kind

All other income information not reported to CPF Board

Verify and adjust the pre-filled information where necessary and add other information that has been prepared before

submitting to IRAS electronically by 1 Mar. If the pre-filled information is complete and correct for AIS submission,

employers can simply click to submit.

CPF Data Link-up Service is suitable for employers who:

Use e-Submit@Web for submission of CPF contributions to CPF Board; and

Are not using supporting payroll software to maintain their payroll records

AIS employers may register for the CPF Data Link-up Service via myTax Portal. The closing date is on 31 Dec.

For more information on CPF Data Link-up Service and how to sign up for it, refer to Sign up for the CPF Data Link-up

Service link at www.iras.gov.sg > Business > Employers > Auto-Inclusion Scheme (AIS) for Employment Income > Sign

up for CPF Data Link-up Service.

CPF Board IRAS

Jan – Dec

of previous year

1 Feb

https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Sign-up-for-CPF-Data-Link-up-Service/

https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Sign-up-for-CPF-Data-Link-up-Service/


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The AIS Submission Process – Submission of Income Information

The last step is to submit the employment income information electronically.

The annual submission of income information commences in Jan. The gazetted deadline to submit the employment

income is on 1 Mar. Employers are encouraged to submit by 10 Feb to avoid the peak period rush.

Tips for e-Submission of Employment Income

Ensure that the employee ID numbers are correct and the income information is prepared for the correct

employee. This will prevent rework.

Your submission has to be complete. Please ensure that all income such as salaries, bonus, director fees, other

employment income, benefits-in-kind, stock option gains, excess employer CPF contributions, etc., and

deductions such as employee CPF contributions, donations, etc., for all employees are reported.

If your employee commenced or ceased employment in the year, please indicate the effective date in Form IR8A.

If the employee's salary is credited to a bank account, please indicate the bank name which the salary is credited

to. However, if the salary payment was made in cash or cheque, please indicate as "Others".

If supporting forms like Form IR8S, Appendix 8A and Appendix 8B are applicable, please ensure that all of them,

together with the IR8A are submitted by 1 Mar. Please ensure that the total amounts reported in the supporting

forms are reflected in the IR8A. This also applies if you submit amendment files (if any).


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The AIS submission process – Making Amendments to Submitted Information

Employers will have to submit an amendment file when there are:

Changes to Employee ID.

Addition to/reduction in income or deduction amounts.

Changes to fields that affected submitted amount.

Employers do not have to submit an amendment if:

The changes involves employees’ personal particulars.

You need to adjust submitted information that is more than 2 back years.

For example, if the current year of submission is for 2017 income, that is Year of Assessment 2018, then the system can

only accept submissions for 2015 and 2016 incomes, that is Year of Assessment 2016 and 2017 respectively. Instead, email

the changes to IRAS via myTax Mail by logging into myTax.iras.gov.sg with your SingPass or IRAS PIN.

Please note that any amendment files must be submitted by 31 Mar.

How does system works?

The system works by adding up all the amounts submitted for each employee. Hence

Prepare and submit only the difference in the amount(s) for affected employee(s).

Leave all other numeric fields not affected by the error blank.

Submit IR8A amendment file if the amendment for the supporting forms affects the amounts submitted for

IR8A.

For details on how to prepare amendment files, refer to Amend Submitted Records at www.iras.gov.sg > Business >

Employers > Auto-Inclusion Scheme (AIS) for Employment Income > Amend Submitted Records.

YA2018 submission

YA2017

YA2016

YA2015

YA2014

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Amend-Submitted-Records

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Amend-Submitted-Records


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The AIS submission process – Examples of Amendments Let’s take a look at some examples on how to amend the submitted information.

Example 1: Under-declared amount

If the amount was under-declared, submit 1 amendment record to add the shortfall at the affected amount field.

Example 2: Over-declared amount

If the amount was over-declared, submit 1 amendment record to negate the excess at the affected amount field.

Example 3: Omission of employee record

If there is an omission of an employee record, submit 1 original record for the omitted employee’s record.

Action Required: Submit 1 Amendment record with amount at Salary field = $4,000

Action Required: Submit 1 Amendment record with amount at Salary field = -$3,000

Action Required: Submit 1 Original record for the omitted employee’s record

Omitted 1 record


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Example 4: Error in Employee ID

If the ID number was submitted wrongly, submit 1 amendment record with negative amounts to negate the submitted

amounts then submit 1 original record with the correct employee ID number.

Action Required: Submit 1 Amendment record for S2345678Z with all negative amounts to negate

the submitted amounts

1 Original record for F3456789A


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How does AIS simplify tax filing for employees?

When your employees file their tax returns, they will just have to:

Verify the employment income and deductions that have been auto-included in their online tax return.

o If the employee is filing paper return, they should fill in ‘0’ for employment income and deductions that

have been auto included.

Include any other income and relief claims (for paper or online returns), where applicable.

Employees may file using myTax Portal by 18 Apr. If the employees are filing paper return, they will have to do so by 15

Apr.

Do note that employees must file an income tax return if they receive a letter, form or SMS from IRAS informing them

to do so.

However, as you have already submitted their employment income information to IRAS, employees do not need to

add the same employment income during their tax filing. Their employment income will be auto-included.

Letter Form SMS


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Summary

Under the Auto-Inclusion Scheme

1. Employers prepare ALL the employment income information.

2. Employer submits the information electronically using AIS software by 1 Mar.

3. IRAS auto-includes information in employees’ tax return and assessment.

4. Employees file their tax returns with employment income already auto-included.

Who to include in the submission?






Pensioners

Employees who have left the organisation but were in receipt of income in

the reporting year (e.g. stock option gains)

Submission process involves 3 steps

Forms to be submitted 1. Form IR8A (Mandatory Form)

Details of Employee and Employment Income

2. Form IR8S (Supporting Form)

Details of excess/voluntary CPF contribution by employer and refunds from CPFB.

3. Appendix 8A (Supporting Form)

Details of Benefits-In-Kind

4. Appendix 8B (Supporting Form)

Details of Share Option Gains

Submit CORRECT and COMPLETE employment information.

If there are any errors made, submit an Amendment File.

!


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Quiz

Question 1

When is the submission deadline for e-Submission of Employment Income?

1. 10 Feb

2. 1 Mar

3. 31 Mar

Question 2

If my organisation is in AIS, I should proceed to inform all employees that they do not need to file their tax returns

1. True

2. False

Question 3

Must I be authorised in order to perform e-Submission of Employment Income?

1. Yes

2. No

Question 4

Must I include the income information of employees who have left my organisation in the submission?

1. Yes

2. No

Question 5

My employee earned Salary: $25,000 and Bonus: $8,000.

However, I have submitted the file with Salary: $28,000 and Bonus: $8,000

In the amendment file, I should submit:

1. Salary: S$3,000, Bonus: S$0

2. Salary: -S$3,000, Bonus: S$0

3. Salary: -S$25,000, Bonus: -S$8,000

Question 6

For employers who have registered for the CPF Data Link-up Service, when will the information from CPFB be pre-filled

into the Submit Employment Income Records at myTax Portal (Online Application)?

1. 14 Jan

2. 1 Feb

3. 1 Mar

Question 7

I do not need to add on my foreign employees’ income information under the CPF Data Link-up Service as it has been

pre-filled for me in the Submit Employment Income Records at myTax Portal (Online Application) from CPFB.

1. True

2. False


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Quiz Answers

Question

No.

Answer Explanation

1 2. Mar Participating employers are required to submit their employees’

employment income information (IR8A and respective appendices, if

applicable) electronically by 1 Mar every year.

We encourage all employers to submit early, before 10 Feb to avoid

peak period congestion. Amendment files must be submitted by 31

Mar.

2 2. False Employers have to inform their employees that they still have to file Tax

Returns (electronically or manually) as long as they have been issued a

SingPass letter, PIN mailer, paper form or SMS to file. However, as the

reporting of employment income is done by the organisation, they do

not need to add the employment income derived from the

organisation during their tax filing. Their employment income will be

auto-populated in their tax returns.

3 1. Yes You must be authorised before you are able to submit the employment

income information electronically via myTax Portal on your

organisation’s behalf.

There are 2 roles for the “Submit Employment Income Records” e-

Service: The Approver role (mandatory) and the Preparer role

(optional).

A person with the approver role is able to prepare and submit

information via myTax Portal. While a person with just the preparer role

is only able to prepare information via myTax Portal. This person will

not be able to submit the information via myTax Portal.

4 1. Yes You will have to include the following categories of employee’s income

information in the submission:






Pensioners

Employees who have left the organisation but were in receipt of

income in the reporting year (e.g. stock option gains)

5 2. Salary: -S$3,000, Bonus: S$0

The amendment file should contain the difference in amounts, and

NOT the overall revised values. Fields which are not affected by the

amendment should be left blank.


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Question

No.

Answer Explanation

6 2. 1 Feb

For employers on the CPF Data Link-up Service, IRAS will pre-fill the

data from CPFB in the Submit Employment Income Records at myTax

Portal (Online Application) by 1 Feb.

Employers have to submit to IRAS electronically by 1 Mar.

7 2. False Only local employees’ data will be obtained from CPFB through the CPF

Data Link-up Service.

Employers are required to add foreign employees’ income information

(if applicable) before they submit for AIS.


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Contact Information

For enquiries on this guide, please call 1800 356 8015 or email [email protected].

Published by

Inland Revenue Authority of Singapore

Published on 1 Nov 2017

The information provided is intended for better general understanding and is not intended to

comprehensively address all possible issues that may arise. The contents are correct as at 1 Nov 2017 and are

provided on an “as is” basis without warranties of any kind. IRAS shall not be liable for any damages, expenses,

costs or loss of any kind however caused as a result of, or in connection with your use of this user guide.

While every effort has been made to ensure that the above information is consistent with existing policies

and practice, should there be any changes, IRAS reserves the right to vary its position accordingly.

© Inland Revenue Authority of Singapore

mailto:[email protected]

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