The Inland Revenue Authority of Singapore (IRAS) has announced that more than 2 million employees will benefit from prefilled tax returns in 2024, as part of the Auto-Inclusion Scheme (AIS). This initiative requires approximately 120,000 employers to submit their employees’ income data by 1 March to prevent penalties.
Last year, 11,000 employers missed the AIS deadline, resulting in inaccurate or delayed tax assessments for 140,000 employees.
The AIS, which simplifies the tax filing process by automatically including employment income data in tax returns, has seen a significant increase in participation.
This year, 12,500 new employers have joined the scheme, bringing the total number of AIS employers to around 120,000. These employers received a notification from IRAS in January 2025, outlining their obligations under the scheme.
The expansion of the AIS is a crucial step in improving the efficiency and accuracy of tax assessments in Singapore.
By ensuring timely submission of employment income data, the scheme aims to reduce errors and delays in tax processing. This initiative not only benefits employees by providing prefilled tax returns but also helps employers streamline their reporting processes.
As the deadline approaches, IRAS urges all AIS employers to comply with the submission requirements to avoid penalties and ensure a smooth tax filing experience for their employees. The continued growth of the AIS reflects Singapore’s commitment to leveraging technology for enhanced tax administration and compliance.
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