AIS Filing Deadline Approaches, due by 1 March 2025

by | Feb 12, 2025 | Accounting, Employment, Income Tax, Tech News

The Inland Revenue Authority of Singapore (IRAS) has issued a critical reminder to employers regarding the upcoming deadline for submitting employment income information under the Auto-Inclusion Scheme (AIS) for Year of Assessment 2025 (income earned in 2024). Submissions are mandatory by March 1, 2025.

Affected Employers:

  • All employers currently enrolled in the AIS, regardless of whether they had fewer than 5 employees in 2024.
  • Employers who first reached or exceeded the threshold of 5 employees at any point during the year 2024.

Severe Penalties for Non-Compliance:
Employers failing to meet the March 1st deadline face significant legal and financial consequences:

  • Corporate Fines: Companies may be fined up to $5,000.
  • Personal Liability: Key personnel, including company directors and precedent partners of partnerships, face:
    • Fines of up to $10,000.
    • Imprisonment for a term of up to 12 months.

IRAS Highlights Critical Filing Errors to Avoid:
To ensure accurate submissions and avoid penalties, IRAS specifically warns employers against these common mistakes when filing under the AIS:

  1. Omission of Taxable Benefits-in-Kind: Failure to report all taxable benefits provided to employees, whether in cash or non-cash form.
  2. Omission of Off-Payroll Income & Benefits: Neglecting to include employment income and benefits recorded outside the organization’s primary payroll system.
  3. Incorrect Reporting of Share-Based Compensation: Omitting or under-reporting the value of share-based awards granted to employees.

Context:
This mandatory filing facilitates the pre-filling of Income Tax Returns for over 2 million employees in Singapore, streamlining the tax process. IRAS’s notice, titled “Over 2 Million Employees to Benefit from Pre-filled Tax Returns; 120,000 AIS Employers to Submit Employees’ Employment Income Data by 1 Mar to Avoid Penalties,” was published on February 11, 2025.

Employers are urged to review their obligations, ensure the completeness and accuracy of their 2024 employment income data, and submit via the AIS before the March 1, 2025, deadline to avoid severe penalties.

Source: IRAS, 11 February 2025.