Tax season in Singapore can be daunting for employers and employees, with forms, deadlines, and potential errors. However, the Inland Revenue Authority of Singapore (IRAS) has introduced the Auto-Inclusion Scheme (AIS) to simplify this process.
This scheme streamlines tax filing by automatically including employment income information in tax returns, reducing the administrative burden and improving accuracy. But what exactly is AIS, and how does it work? Let’s delve deeper.
Who Needs to File Taxes in Singapore?
Before we explore AIS, it’s important to understand who is required to file taxes in Singapore. Generally, you are required to file an income tax return in Singapore if:
- Your total income exceeds S$22,000.
- Your self-employment income with a net profit exceeds S$6,000.
- You are a non-resident with income from sources in Singapore.
Key Tax Season Timelines
Understanding the key tax filing deadlines is crucial for employers and employees.
- For Employers: Employers participating in the AIS must submit their employees’ income information electronically to IRAS by 1 March each year.
- For Employees: Employees are required to file their income tax returns between 1 March and 18 April each year.
What Employers Need to Submit
Employers who are part of the AIS need to submit specific forms to IRAS, each serving a distinct purpose:
- Form IR8A: This form contains details of the employee’s income and employment information.
- Form IR8S: This form reports any excess or voluntary CPF contributions made by the employer.
- Appendix 8A: This form details benefits-in-kind provided to employees.
- Appendix 8B: This form provides information on stock options granted to employees.
What is AIS?
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The Auto-Inclusion Scheme (AIS) is an IRAS initiative that simplifies the tax filing process. Under the AIS, employers submit their employees’ employment income information directly to IRAS electronically. This information is then automatically included in the employees’ tax returns, eliminating the need for them to manually input their income details and reducing the risk of errors.
Submission under Section 68(2) of the Income Tax Act is mandatory for employers who:
- Have 5 or more employees in the year 2025;
- Received a “Notice to File Employment Income of Employees Electronically”; or
- Were registered for AIS on or before 1 March 2026 and remained registered as of that date.
For employers who are not under the AIS, they are required to provide the hardcopy Form IR8A and other applicable forms to their employees by 1 March of the year after the income is derived. Employers do not need to submit these forms to IRAS.
Benefits of AIS
The benefits of AIS are numerous. For instance:
- Ease of Filing: AIS eliminates manual data entry and the need for paper-based forms (like the IR8A form), making tax filing more manageable for both employers and employees.
- Increased Accuracy: By automating data transfer, AIS reduces the risk of errors and ensures accurate tax reporting.
- Convenience: AIS provides a seamless and efficient way to manage tax obligations, saving time and effort for everyone involved.
Note: While AIS participation is not mandatory for all employers, its benefits in simplifying and streamlining the tax filing process make it a valuable tool for businesses of all sizes.
BIPO: A Category A AIS Payroll Software Provider
BIPO is proud to be listed as a Category A AIS payroll software vendor by IRAS. This recognition means that BIPO’s HR software in Singapore meets the highest compliance and security standards for AIS submissions.
IRAS categorises payroll software vendors into three categories:
| Category of Software Compliance to Controls |
Description |
| A |
Fully complies with all 24 controls set by IRAS. |
| B |
Complies with 10 basic controls. |
| C |
Does not comply with the controls. |
To be listed as a Category A vendor, the payroll software must meet stringent requirements, including data security, accuracy, and reliability. BIPO’s HRMS system in Singapore has been tested and audited to ensure it meets these standards, providing businesses with a secure and reliable platform for managing their AIS submissions.
Streamline Your Tax Season with BIPO’s HRMS
The Auto-Inclusion Scheme (AIS) is a valuable initiative by IRAS that simplifies the tax filing process in Singapore. By automating data submission and ensuring accuracy, AIS benefits both employers and employees. With BIPO’s Category A AIS payroll software, businesses can seamlessly manage their AIS obligations and optimise their tax filing process.
To check if an organisation is in the Auto-Inclusion Scheme (AIS) for Employment Income and the status of the file submission by the organisation, visit IRAS’ Search AIS Organisation page. If you’re looking for a new payroll software vendor, check out this list of AIS payroll software vendors for the Auto-Inclusion Scheme (AIS) for Employment Income (as of 4 June 2025).
BIPO is a Pre-Approved Solution Under the IMDA SMEs Go Digital Programme
Ensure you have ample time before the YA2026 tax season. Get in touch with us today to find out how BIPO’s payroll system can help simplify your tax filing process.
Singapore SMEs are eligible for up to 50% Productivity Solutions Grant (PSG) support for the adoption of
- Human Resource Management System, or
- Human Resource Management System and Payroll Outsourcing Services
