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March 1 AIS deadline approaches: How employers can file faster and easier ahead of tax season
With the recent enhancements to the Auto-Inclusion Scheme digital service, it will be easier for firms to submit employees’ income information
Employers may submit their employees’ information through IRAS’ digital service, myTax Portal.
PHOTO: GETTY IMAGES
About 123,000 employers under the Auto-Inclusion Scheme (AIS) are required to submit their employees’ 2025 employment income information to the Inland Revenue Authority of Singapore (IRAS) by March 1, 2026, with recent enhancements to the AIS digital service providing employers with an improved user experience.
These enhancements include extended back-year filing, where AIS employers can now submit employment income information for up to four back years (double the previous two-year limit), more data pre-filled in the Data Link-up Service and easier amendment of submitted income information where employers can now directly overwrite the previous information.
Employers would have received a letter from IRAS in Jan 2026 informing them of their obligations under the AIS.
When filed on time and accurately, AIS data enables employees’ income details to be pre-filled in their tax returns, supporting the No-Filing Service (NFS) and Direct Notice of Assessment (DNOA) for the Year of Assessment (YA) 2026. Over 2 million employees whose employers are on AIS are expected to benefit from these conveniences.
Employers can refer to IRAS’ quick guide go.gov.sg/IRAS-sffs
What employers need to know when submitting Auto-Inclusion Scheme (AIS) information
Employers must ensure that their submissions for their employees to IRAS are complete and accurate, as the information will be used to calculate their employees’ tax bills.
To avoid any last-minute rush, employers are advised to prepare the necessary information well in advance. Late or non-submissions by employers will cause inaccurate or delayed tax assessments for their employees.
Submitting incorrect employee income information is an offence and may result in a penalty of up to twice the amount of tax undercharged.
Employers who fail to file the required information by March 1, 2026, may be fined up to $5,000. Therefore, IRAS urges all AIS employers to meet the deadline to avoid potential legal consequences.
Employers with fewer than five employees who are not on AIS and are interested in joining the scheme voluntarily may do so in next year’s filing, that is, YA 2027, by registering for AIS via myTax Portal by March 1, 2027.
Employers may also refer to AIS videos
Common mistakes in Auto-Inclusion Scheme (AIS) income reporting
Omitting taxable benefits-in-kind (cash or non-cash)
Gifts for special occasions, such as birthdays or weddings, and awards, including long-service or excellence awards, are taxable if their value exceeds $200.
Staff discounts extended to employees, as well as their family members, relatives or friends, are taxable if the value of the goods or services exceeds $500.
Subscription fee paid to a professional body for access to professional updates, knowledge, and networking is taxable. However, the employee can claim this as a deductible expense when filing their income tax return.
Incorrect reporting of accommodation benefit
The taxable value of the accommodation benefit should be based on the actual rental amount and not the annual value of the property if the property is rented by the employer.
Omitting employee income/benefits outside the payroll system
Benefits paid directly to third parties on an employee’s behalf – such as insurance premiums to insurers – are taxable.
Salaries in foreign currency, pensions or share schemes from overseas parent companies for expatriate employees are also taxable.
Under-reporting of stock or options gains
Free shares granted to employees are taxable and must be declared.
Voluntary Disclosure Programme
Employers are encouraged to voluntarily disclose any past errors or omissions in their employees’ information immediately, for reduced penalties under IRAS’ Voluntary Disclosure Programme.
More details on the Voluntary Disclosure Programme can be found at go.gov.sg/IRAS-iitvdp
Situations that can lead to non-compliance
If there is a change in the person handling the AIS submissions, employers should update their AIS contact person’s details via myTax portal for the timely receipt of AIS information from IRAS.
If it is a case where the employer is having challenges keeping up with administrative obligations, the business owner can simplify AIS submissions with payroll software or sign up for AIS Data Link-up Service
Employers already on AIS are still required to file by March 1, 2026 even if their headcount has fallen below five employees.
For businesses that have closed or ceased operations, please submit the Update on Organisation Status Form
