11,000 employers on Iras auto-inclusion scheme failed to file on time in 2024
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A total of 654 repeat offenders were prosecuted in 2024. Iras said most of the employers that were fined were in the F&B, wholesale trade and construction industries.
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SINGAPORE – About 11,000 employers or one in 10 on the tax authority’s auto-inclusion scheme (AIS), which allows employees to enjoy pre-filled tax returns, missed the deadline in 2024.
This caused inaccurate or delayed tax assessments for 140,000 employees, said the Inland Revenue Authority of Singapore (Iras) on Feb 11.
A total of 654 repeat offenders were prosecuted in 2024, resulting in penalties exceeding $790,000. The authority said that most of the employers that were fined were in the food and beverage, wholesale trade and construction industries.
Iras reminded employers to submit their employees’ income information by March 1.
This applies to all employers that are already on the AIS even if they have fewer than five employees in 2024, and employers that started having five or more employees in 2024.
Employers who do not file on time may be fined up to $5,000. Key individuals of non-compliant businesses, such as company directors or partners, can also be fined up to $10,000, jailed for up to 12 months, or both.
Iras said that 12,500 new employers joined the AIS employer base in 2025, bringing the total to about 120,000. They would have received a letter from Iras in January informing them of their AIS obligations.
Over two million employees are expected to benefit from the AIS in 2025.
According to Iras’ website, employers on the AIS can send their employees’ income details directly to the authority from their payroll software or submit them online via myTax Portal.
This means that employees do not need to manually key in their income details when they file their tax returns, reducing the risk of errors.
Iras urged employers to submit complete and accurate employment income information for their employees.
It observed some common errors made by employers, including the omission of taxable benefits-in-kind and employee income and benefits outside the payroll system, incorrect reporting of accommodation benefits, as well as the under-reporting of gains from the exercise of stock options.
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.
Details on the programme can be found at go.gov.sg/iras-iitvdp
Timothy Goh is a business journalist at The Straits Times. He covers private equity, with a focus on start-ups and venture capital.
