What is the Auto Inclusion Scheme (AIS) for employment income?
The Auto Inclusion Scheme for employment income is a facility in which the employers submit income details of their employees electronically to IRAS. This information is then automatically included in the employees online return and tax assessment by IRAS. The employees do not need to enter the required information manually but only need to verify the correctness of the information.
All employers having 7 or more persons stated below are required to register for AIS. However the IRAS encourages all employers to register for AIS
Employees for which information has to be submitted under AIS
- Full time resident employees
- Part time resident employees
- Non resident employees
- Company directors including non resident directors
- Board members receiving Board / Committee member fees
- Employees who have left but are in receipt of any employment related income (such as stock options)
Steps in AIS process
- The Employer prepares the employment information
- Using any AIS software, this information has to be submitted to IRAS by 1st of March
- The employer gives a copy of the employment information to the employee. It can also choose to give copy of the IR8A form.
- The IRAS includes the information submitted in the employees return
- The Employee’s tax filing process is considerably simplified
Information to be submitted
- IR8A (Mandatory for all employees) – To be used ot submit employment information for all employees
- Appendix 8A (where applicable) – To be completed if the employee is provided with Benefits-in-Kind
- Appendix 8B (where applicable) – To be completed if the employee has derived gains or profits either directly or indirectly from the exercise, assignment or release of any share option right or benefit, or right or benefit from other forms of Share Ownership Plans where such right or benefit was obtained by reason of any office or employment.
- Form IR 8S (where applicable) – To be completed if excess CPF contributions are made by the employer.