The Auto-Inclusion Scheme (AIS) is a program run by the Inland Revenue Authority of Singapore (IRAS) to streamline tax filing for both employers and employees.
Here’s how it works:
- Employers submit their employees’ employment income information electronically to IRAS between January 6th and March 1st of each year.
- IRAS then automatically includes this information in the employees’ online tax returns.
- Employees simply review the pre-filled information for accuracy and submit their tax returns.
This scheme benefits both employers and employees:
- Employers: Less paperwork and a faster filing process.
- Employees: No need to manually declare their employment income, potentially leading to fewer errors and a quicker tax assessment.
Participation is mandatory for employers with 5 or more employees or those instructed to do so by IRAS. However, even smaller employers are encouraged to join the scheme for a smoother tax filing experience.