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30th October 2017

Are you compelled to participate in AIS?

 

 

As we enter the last quarter of this year, you might find yourself start scrolling through information concerning income tax in hope to be prepared. If you keep bumping into the word AIS but not sure what to make out of it, it is about time to find out.

AIS or Auto-Inclusion Scheme enables employers to submit employees’ employment income information to IRAS electronically. Find out if you fit the bill for the scheme below.

In accordance with Income Tax Act, employers who have in total 9 or more employees for the entire basis year or who have received the “Notice to File Employment Income of Employees Electronically” are obligated to participate in AIS.

The 9 employees should include:

-          Full-time resident employees

-          Part-time resident employees

-          Non-resident employees

-          Company director (including non-resident directors)

-          Board members receiving Board/Committee Member Fees

-          Pensioners

-          Employee who has left the organisation but was in receipt of income in the reporting year (e.g. stock option gains)

And the count refers to the total number of employees that the organisation had in the basis year (e.g 1 January 2017 to 31 December 2017 for YA 2018), this includes employees who had left the organisation during the year.

Employers who have been identified by IRAS to join the AIS for YA 2018 should have received a notification letter by July 2017. If you have 9 or more employees but are yet to receive any notification from IRAS by August 2017, you should inform them at ais@iras.gov.sg.

What if you are not bound to participate in AIS?

You can still provide the required forms to your respective employees for their income tax filing as you have done over the years. However, bear in mind that IRAS strongly encourage all employers, regardless of the number of employees, to join AIS. And over the years, they have been progressively imposing more employers to take part in the scheme by decreasing the minimum headcount required to participate.

Even when you are not required to join AIS, you can still voluntarily register for YA 2018 AIS submission by 31 December 2017.