Employees to be Included in AIS Submission

Under the Auto-Inclusion Scheme (AIS) for Employment Income, employers are to submit details of the employment income for all classes of employees to IRAS electronically.

All Classes of Employees

"All classes of persons" as defined in the gazette under S68(2) of the Income Tax Act are:

  1. Full-time resident employees;
  2. Part-time resident employees;
  3. Non-resident employees;
  4. Company directors (including non-resident directors);
  5. Board members receiving Board/ Committee Member Fees;
  6. Pensioners; and
  7. Employees who have left the organisations but were in receipt of income in the reporting year (e.g. stock option gains)

Important Information for Employers

Employees Posted Overseas

  • Overseas posting incidental to Singapore employment

    Overseas employment which is incidental to a Singapore employment is taxable in Singapore. Employers are required to submit the employees' income and CPF contribution for the year.
  • Overseas posting not incidental to Singapore employment

    Employers are required to select 'Income from Overseas Employment' under 'Remission/ Exempt/ Non-Taxable indicator'; regardless whether the overseas posting is for the whole year or part of the year.

    Employers are required to report for their employees' donations/ contributions to Mosque Building Fund and/ or life insurance premiums paid through their salaries.

If the period of overseas posting is for:

  • whole year, you are not required to report the employment income or the employee's CPF contribution.
  • part of the year, you are only required to report the income and the employee's CPF contribution for the Singapore employment. 

For more details, refer to Explanatory notes on Form IR8A and Appendix 8A.

As of 1 Jan 2004 (Year of Assessment 2005):

  • remittance from overseas employment is not taxable;
  • any excess CPF contribution by the employer is not taxable; and
  • employee's CPF contribution is also not deductible.

In the situation where the employee is required to travel overseas as part of his work in Singapore, the overseas employment is considered as incidental to the Singapore employment.

Employees Rehired within a Year

When an employee leaves and re-joins the organisation in the same year, please consolidate the employment income information and submit as one record.

Trainees and Students on Attachment

Employers must submit the employment income information for students who enter into an employment contract with the employer in Singapore and remuneration is paid for the rendering of services.

There is no need for submission of allowance information if there is no employment contract and the students are only given an allowance for defraying the costs of travelling and meals during the training period.

Foreigners or Expatriates

Employers must submit employment income information for foreign and expatriate employees. Submission is required regardless of the income amount or the duration of employment.

Employers are required to use the Foreign Identification Number (FIN) issued to foreign employees by Ministry of Manpower (MOM) or Immigration and Checkpoint Authority (ICA) in their submissions. A valid FIN must consist of a prefix 'F'/ 'G', with seven digits and a check-digit. E.g. F1234567A or G7654321R.

Directors

A director (who is a member of the board of directors) is someone who is working for the company and is charged with managing the company’s conduct and its affairs. 

Sole Proprietors and Partners

As Sole-Proprietors and Partners are owners of their own businesses, the salaries drawn from the businesses are taxable as trade income. The income information of these sole-proprietors and partners should be excluded via the Auto-Inclusion Scheme.

Exception
The income information of partners who are engaged under an employment contract with the partnership should be submitted as employment income via the Auto-Inclusion Scheme. 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'.

  • How do I segregate the contributions to Yayasan Mendaki Fund and the Mosque Building Fund?

    Please refer to MUIS' (Majlis Ugama Islam, Singapura) website (http://www.mbmf.sg/) for the basis of segregation.
  • Must I report the actual donations made or the tax-deductible donations in the submission for the employee?

    You should report only the amount of tax-deductible donation deducted from salary.
  • Should I include employees who worked for a short period and left the organisation?

    Yes, you should include employees who had left the organisation during the year.
  • Do I only submit the income information of employees who are taxable?

    You are required to prepare and submit the employment income information for all employees regardless of the income amount.
  • Must I submit fees that are paid to individuals who are not employees of the organisation?

    Payments made to individuals who are not employees should not be included in the submission. These individuals should report the fees by themselves.
  • This is the first year that I am participating in the Auto-Inclusion Scheme for Employment Income (e.g. YA 2018). Can I also submit electronically back year’s (e.g. YA 2017) income that are adjusted in this year?

    No, you need to prepare hardcopy IR8A for the back years where adjustments are made to employment income information (prior to joining AIS).
  • Do I have to submit the income information of foreign employees whose income is below $22,000 and tax clearance is not required?

    Yes, you are still required to include these foreign employees' employment income information in the submission.
  • Do I have to submit the IR8A if IR21 has already been submitted and income tax has been cleared?

    You do not have to submit IR8A for employees who have sought tax clearance. However, if you are unable to differentiate and exclude such employees from your payroll system, you can include them in your submission. IRAS will not tax the same income again if the employee has already been assessed to tax.
  • Can I use the work permit number for foreign employees for the submission as it is currently captured in the payroll software?

    No, please update these records with their Foreign Identification Number (FIN) before you submit the information to IRAS. All foreign employees should have FIN issued by Ministry of Manpower (MOM) or Immigration and Checkpoint Authority (ICA).
  • Am I required to submit the information of director's fees paid to a non-resident director if income tax has been withheld?

    Employers under AIS have to declare the employment income information of all their employees, including non-resident directors. If Section 45 withholding tax has been paid on director’s fees payable to a non-resident director, select ‘Y’ as the indicator under ‘Section 45 (Applicable to Non-Resident Director)’.

    You are not required to submit their information only when the director is solely receiving director's fees.

  • How do I declare exempt income?

    You can declare the exempt income under the item "Amount of exempt income for which tax remission is granted / Exempt / Non-Taxable" and select the exemption type under "Remission/ Exempt/ Non-Taxable indicator" on the IR8A screen.
  • How do I declare the Appendix 8A if an employee was provided with more than one place of residence?

    You may prepare separate Appendix 8A records for each place of residence provided to the employee.

    Only the Offline Application allows employers to prepare and submit multiple Appendix 8A records. 

  • Can I declare the stock option gains in a foreign currency?

    No. You need to report the foreign stock option gains in Form IR8A and Appendix 8B,in Singapore currency .

    Actual Exchange Rates

    For the conversion, you should use the actual exchange rate as of the date the employee exercised the stock option.

    In-House Exchange Rates

    If you do not have the exchange rate on the date of exercise, you may use your organisation's in-house exchange rate for conversion purpose.

    Published Exchange Rates

    If your organisation does not have any in-house exchange rate, you may use the exchange rates published by local banks, locally circulated newspapers and reputable news agencies.

    You may use any of the sources of exchange rates listed above. Ensure that you:

    1. Uses the same source for all employees;
    2. Apply the same source for all years; and
    3. Communicates to all employees the source of exchange rate that will be used for the purpose of foreign currency conversion in reporting their stock option gains to IRAS.
  • My business is a partnership which paid salaries to partners. Do I report these salaries?

    You need to submit employment income information of partners who are engaged under an employment contract with the partnership (i.e. partners who generally do not assume the liabilities of the business and does not have a share in the profit/loss of the partnership). These partners are considered as employees.

    You do not need to submit the remuneration of partners who are self-employed. The precedent partner of the partnership should allocate the income of these partners who have a share in the profit/loss of the partnership and receive remuneration (salary, bonus, CPF, and other benefits) in the partnership tax return Form P. The partners then report their allocated share of profit/loss and remuneration (salary, bonus, CPF, and other benefits) from the partnership in the 'Trade, Business, Profession, or Vocation' section and 'Partnership' sub-section in the personal income tax return. 

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