In the Year of Assessment (YA) 2025, over 2 million employees (9 in 10 employees) will benefit from pre-filled tax returns, No-Filing Service (NFS), or Direct Notice of Assessment (D-NOA). This is made possible as the Inland Revenue Authority of Singapore (IRAS) requires approximately 120,000 employers under the Auto-Inclusion Scheme (AIS) to electronically submit their employees’ 2024 employment income data by 1 March 2025.
This submission requirement applies to:
- All employers already on AIS, regardless of the number of employees.
- Employers who had five or more employees in 2024.
Failure to comply is an offence under the Income Tax Act and may result in penalties.
Consequences of Missing the AIS Filing Deadline
While most employers comply with the AIS filing requirement, approximately 11,000 employers missed the deadline in 2024, causing delays and inaccurate tax assessments for 140,000 employees. Missing the deadline can lead to offences and significant inconvenience for employees due to missing pre-filled employment income information.
Growth of AIS Employers in YA 2025
- 12,500 new AIS employers have joined the AIS this year.
- Bringing the total AIS employer base to approximately 120,000.
- IRAS issued letters in January 2025 to inform these employers of their obligations.
Penalties for Non-Compliance
Employers who fail to file by 1 March 2025 may face the following penalties:
- Fines up to $5,000.
- Key personnel (e.g., company directors or precedent partners) may be fined up to $10,000 and/or face imprisonment of up to 12 months.
For YA 2024:
- 1 in 10 AIS employers failed to file on time.
- 654 repeat offenders were prosecuted.
- Penalties exceeding $790,000 were collected.
- The majority of non-compliant employers were in food & beverage, wholesale trade, and construction industries.
Common AIS Filing Errors
Employers must ensure the accurate and complete submission of employment income data. Common errors include:
- Omitting taxable benefits-in-kind (cash/non-cash) and off-payroll employee income.
- Incorrect reporting of accommodation benefits.
- Under-reporting of stock/options gains.
Voluntary Disclosure Programme (VDP)
Submitting inaccurate employee income data is an offence and may result in a penalty of up to double the tax undercharged. Employers who voluntarily disclose past errors may qualify for reduced penalties under IRAS’ Voluntary Disclosure Programme (VDP).
For more details, visit go.gov.sg/iras-iitvdp.