Employers, sign up for the Auto-Inclusion Scheme to enjoy four benefits 

Running a business is hard work. For small businesses, it is even more daunting as business owners and employees often have to double or even triple hat different roles in sales, marketing and human resource to keep running costs down. To help businesses streamline their work, IRAS’ Auto-Inclusion Scheme (AIS) takes away the hassle of issuing paper Form IR8A and simplifies tax filing.

All employers just need to do for AIS is to adopt a payroll software integrated with AIS Application Programming Interface (API) Service. With this, they can send their employees’ employment income details directly to IRAS or submit it online via myTax Portal.

Currently, AIS is compulsory for employers who are on the scheme or those who have 5 or more employees – including full-timers, part-timers, company directors and board members. If your company has fewer than 5 employees, you can also sign up for AIS. In 2024, more than 110,000 employers participated in the AIS – the highest number since IRAS started AIS. 

Find out about the benefits of AIS. Sign up for AIS between 1 April and 31 December 2024 to enjoy its benefits for Tax Season 2025.

Benefit 1: Time-savings

Employers save time on issuing hard copy Form IR8A. With AIS, employers can send their employees’ employment income details directly to IRAS from their payroll software or submit it online via myTax Portal. With this, employees need not manually key in their income details when they file their tax returns.  More details on filing seamlessly from software can be found on the IRAS website.

Benefit 2: Accuracy

Certain features in some payroll software can improve the accuracy of AIS submissions, e.g. auto-computation of the amount of benefits-in-kind, allowing businesses to avoid filing errors. Employees will also benefit from employers’ AIS submission as it reduces the risk of errors made by employees during manual data entry in their tax returns. These can result in more accurate submissions by both employers and employees and reduce incurring fines or penalties for incorrect tax returns.

Benefit 3: Convenience

Employers and employees both enjoy convenience with AIS.

Employers can eliminate the need to prepare Form IR8A for their employees. They can simplify their AIS obligations by using payroll software integrated with the AIS API to transmit their employees' income directly to IRAS.

Additionally, employers can save time manually keying in their employees’ income information if they register for the CPF Data Link-up Service. This service allows IRAS to retrieve the income details of employees who are required to contribute to CPF from the CPF Board and automatically populate their income details on IRAS’ portal for employers' verification and submission. Employers who have submitted their records online at IRAS’ portal can view their employees’ records up to two previous years at all times.

With employers’ participation in AIS, their employees may be eligible for the No Filing Service (NFS) where they do not need to file an income tax return if the income and relief information in their tax forms are in order.

Benefit 4: Eco-friendly

Sign up for AIS and hop on the sustainability bandwagon with IRAS. IRAS is committed to environmental sustainability and aims to embed sustainability in our core business. With AIS, employers eliminate hardcopy Form IR8A and do their bit for the environment.