• More than 11,000 new AIS employers to submit their employees’ income data to IRAS for the first time under the AIS
• Enhanced digital service brings added convenience to AIS employers
• Over 12,000 AIS employers failed to file on time in 2025, leading to inaccurate and/or delayed tax assessments for over 160,000 employees

123,000 employers are under the Auto-Inclusion Scheme (AIS), enabling over 2 million employees to benefit from the convenience of pre-filled tax returns, No-Filing Service (NFS) or Direct Notice of Assessment (D-NOA) for Year of Assessment (YA) 2026.

Under the AIS, employers must electronically submit their employees' 2025 employment income information to IRAS by 1 March 2026, ahead of the tax filing season. This requirement applies to all existing AIS employers regardless of their current workforce size (even if they have less than 5 employees in 2025), as well as employers that started having five or more employees during 2025.

Over 11,000 new AIS employers join the growing AIS employer base this year and will submit their employees’ income data to IRAS for the first time under the AIS. These employers would have received notification letters from IRAS in January 2026 outlining their obligations under the AIS. Failure to comply with these requirements is an offence under the Income Tax Act.

Enhancements to AIS Digital Service

IRAS has enhanced the AIS digital service to make it more convenient for employers to submit their employees’ income information. These enhancements include extended back-year filing, where AIS employers can now submit employment income information for up to 4 back years (double the previous 2-year limit), more data pre-filled in the Data Link-up Service and easier amendment of submitted income information where employers can now directly overwrite the previous information.

Information on the full list of enhancements can be found on the IRAS website.

Over 160,000 Employees Affected by Non-Compliant AIS Employers in 2025

In 2025, over 12,000 employers missed the AIS deadline, causing inaccurate or delayed tax assessments for over 160,000 employees. Employers who fail to file on time commit an offence and cause significant inconvenience to their employees due to the missing employment income information.

Penalties Exceeding $1,000,000 Imposed on Non-Compliant AIS Employers in 2025

AIS employers that do not file by 1 March 2026 can be fined up to $5,000 under Section 94(1) of the Income Tax Act 1947. In addition, key personnel of non-compliant employers such as company directors or precedent partners can be fined up to $10,000, and/or face imprisonment for a term of up to 12 months if they fail to respond to IRAS’ notices.

IRAS prosecuted 1,207 repeat offenders, resulting in penalties exceeding $1,000,000 imposed on them in 2025. These repeat offenders would have received multiple letters, emails and/or calls from IRAS to remind them of their filing obligations. Majority of these employers are in the food and beverage, wholesale trade and construction industries. 

Common AIS Filing Errors

Employers must ensure the submission of complete and accurate employment income information for their employees to IRAS, as this data will be used to calculate their employees’ tax bills. 

Common AIS filing errors made by employers include omitting taxable benefits-in-kind (cash/ non-cash) and employee income/ benefits outside the payroll system, incorrect reporting of accommodation benefit, as well as the under-reporting of stock/ options gains.

Submitting inaccurate employees’ employment income information is an offence and may result in a penalty up to double the amount of tax undercharged. Employers are encouraged to voluntarily disclose any past errors or omissions in their employees' information immediately, for reduced penalties under IRAS’ Voluntary Disclosure Programme. More details on the Voluntary Disclosure Programme can be found at go.gov.sg/iras-iitvdp.

Inland Revenue Authority of Singapore