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In 2024, 11,000 employers failed to meet the deadline for submitting their Annual Information Statements (AIS), resulting in inaccurate or delayed tax assessments for 140,000 employees.

For the Year of Assessment 2025, over two million employees (9 in 10) whose employers participate in the Auto-Inclusion Scheme (AIS) will benefit from pre-filled tax returns, the No-Filing Service (NFS), or Direct Notice of Assessment (D-NOA). This is due to the Inland Revenue Authority of Singapore (IRAS) extending the AIS to approximately 120,000 employers, requiring them to electronically submit employee income information for 2024 by March 1, 2025. This requirement applies to all existing AIS employers, even those with fewer than five employees in 2024, and to employers who reached five or more employees during 2024. Non-compliance is an offense under the Income Tax Act.

Although most employers complied, approximately 11,000 missed the 2024 AIS deadline, resulting in inaccurate or delayed tax assessments for 140,000 employees. Late submissions are an offense and inconvenience employees by delaying pre-filled income information.

About 120,000 AIS Employers to File Employees’ Employment Income Data for YA 2025

12,500 new employers have joined the Auto-Inclusion Scheme (AIS) this year, bringing the total number of participating employers to approximately 120,000. These new AIS employers will submit employee income data to IRAS for the first time and were notified of their obligations in January 2025.

In 2024, penalties exceeding $790,000 were collected from repeat offenders.

Employers failing to file by March 1, 2025, may face fines of up to $5,000. Key personnel in non-compliant businesses, such as company directors or precedent partners, may be fined up to $10,000 and/or imprisoned for up to 12 months.

In Year of Assessment 2024, 10% of employers using the Auto-Inclusion Scheme (AIS) failed to file on time. The Inland Revenue Authority of Singapore (IRAS) prosecuted 654 repeat offenders in 2024, collecting over $790,000 in penalties. These employers, primarily from the food and beverage, wholesale trade, and construction industries, had received multiple reminders from IRAS regarding their filing obligations.

Common AIS Filing Errors

Employers must submit complete and accurate employee income information to IRAS for tax calculation.

Common AIS filing errors include omitting taxable benefits-in-kind (both cash and non-cash), income and benefits outside the payroll system, incorrect reporting of accommodation benefits, and under-reporting of stock option gains.

Voluntary Disclosure Programme

Inaccurate employee income reporting is an offense and may result in penalties of up to double the undercharged tax. Employers who voluntarily disclose errors or omissions under the IRAS Voluntary Disclosure Programme may qualify for reduced penalties. Details on the program are available at http://go.gov.sg/iras-iitvdp .

Inland Revenue Authority of Singapore

Over 6,000 employers previously using the Auto-Inclusion Scheme (AIS) are not required to file for Year of Assessment 2025 due to business cessation or having no employees in 2024.

If your company needs help filing taxes for the year 2025, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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