IR8A and the Auto-Inclusion Scheme (AIS) in Singapore: Employer Filing Obligations 2026

Every Singapore employer has an obligation each year to report each employee’s income to IRAS using Form IR8A, together with prescribed appendices for benefits, share-option gains and overseas income. Since 2022 the Auto-Inclusion Scheme (AIS) has been mandatory for all employers with five or more employees, and from Year of Assessment 2023 the threshold dropped to five employees in the preceding year. By 2026 the vast majority of Singapore employers — including most SMEs — are caught.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

This guide explains who must file Form IR8A, who must register for AIS, the data fields, the 1 March deadline, and the penalties for late or incorrect filing.

What is Form IR8A?

Form IR8A is the annual return of employee income filed by every Singapore employer. It captures, for each employee employed during the calendar year, their full employment income: salary, bonuses, allowances, director’s fees, commissions, and the taxable value of any benefits-in-kind.

The form is supplemented by:

• Appendix 8A — benefits-in-kind such as car benefits, housing, and club memberships. See our Appendix 8A guide.
• Appendix 8B — gains from employee share options (ESOP) or share awards (ESOW). See our Singapore ESOP guide.
• Form IR8S — where excess CPF contributions have been made on the employee’s behalf.

What is the Auto-Inclusion Scheme (AIS)?

The AIS is IRAS’s electronic submission scheme. Instead of issuing Form IR8A on paper to each employee (who would then transcribe it into their personal tax return), the employer transmits the data directly to IRAS, which auto-includes it in the employee’s individual income tax assessment.

For employees, the benefit is huge: employment income is pre-filled on their tax return. They simply log into myTax Portal, verify the figures, and add any other income (rental, interest, foreign income, side gigs).

For employers, AIS removes the need to print and distribute paper IR8As — but in exchange, the data must be submitted in IRAS’s prescribed electronic format and to a strict deadline.

Who must register for AIS in 2026?

AIS is mandatory for any employer who had 5 or more employees in the year preceding the year of assessment. The count is taken on a snapshot basis as at 31 December of the preceding year. Employees include Singapore Citizens, PRs, foreigners on Employment Pass, S Pass and Work Permit, directors who receive director’s fees, and pensioners receiving pension from the employer.

Employers who fall below the threshold can voluntarily register for AIS — and most do, because it removes the paper workflow. Once registered, an employer cannot easily de-register; participation is automatic in subsequent years even if headcount drops below five.

Registration is done through the IRAS website via the e-Submission of Employment Income page using CorpPass.

What income must be reported on IR8A?

Form IR8A captures all income chargeable to tax under Section 10(1)(b) of the Income Tax Act, including:

• Basic salary, wages and overtime pay.
• Bonuses and incentive payments.
• Allowances (transport, housing, meal, mobile phone, etc.) — even if tax-exempt.
• Director’s fees voted by the company.
• Commissions.
• Gratuity and ex-gratia payments on termination.
• Benefits-in-kind (transferred to Appendix 8A for valuation).
• Gains or profits from ESOP/ESOW exercised in the year (transferred to Appendix 8B).
• Pension and retirement gratuities.

CPF contributions made by the employee are reported separately. Employer CPF contributions are not employee income but are flagged on the form for reconciliation purposes. For a refresher on payroll, see our CPF for Singapore Employers 2026 guide.

The 1 March deadline

Both AIS submissions and any remaining paper Form IR8A distributions are due by 1 March of each year, reporting the previous calendar year’s income. The deadline is strict — IRAS does not grant routine extensions.

For AIS, the submission is via the e-Submission of Employment Income service on myTax Portal. Most payroll software (e.g. Talenox, JustLogin, QuickHR, Xero Payroll) can generate the AIS file directly. For smaller employers, IRAS provides a free offline application called Validation and Submission Application (VSA).

Penalties for late or incorrect filing

Late submission carries a default penalty of S$1,000 per occurrence, plus prosecution exposure under Section 94 of the Income Tax Act for serial non-compliance. Incorrect filings — wrong income figures, omitted bonuses, misclassified benefits — can result in:

• A penalty of up to twice the tax undercharged on the employee.
• For the employer: a fine of up to S$5,000.
• For deliberate evasion: prosecution under Section 96 of the Income Tax Act, with imprisonment of up to three years and triple-tax penalty.

Where the error was inadvertent and disclosed before IRAS commences enquiries, the employer can apply under IRAS’s Voluntary Disclosure Programme for reduced penalties.

Practical tips for employers

Reconcile against CPF submissions monthly

The single biggest source of IR8A errors is mismatched data between payroll, CPF submission and the annual return. Reconcile monthly so the year-end figures roll up cleanly.

Capture benefits-in-kind in real time

Don’t wait until February to value the company car, the housing allowance or the club membership. Build the IRAS valuation tables into your monthly payroll workflow so the figures are ready by 31 December.

Track equity carefully

ESOP and ESOW gains are calculated based on the value at exercise/vesting, not at grant. Maintain a running cap table of all employee share movements so Appendix 8B is accurate. See our ESOP guide for the valuation rules.

Watch the tax-residency cut-off for departing foreigners

For foreign employees who leave Singapore, the employer must also file Form IR21 (Tax Clearance) at least one month before the cessation date. See our Form IR21 guide. The IR8A captures only employment income earned up to the cessation; IR21 is the formal clearance.

What changes in 2026?

Two practical changes to flag for the 2026 filing cycle (reporting 2025 income):

• Mandatory AIS for smaller employers — the 5-employee threshold continues to apply, and IRAS is gradually pulling more micro-employers into the scheme through outreach campaigns.
• Updated CPF wage ceiling — the Ordinary Wage ceiling has been raised in stages, which affects Form IR8S for excess contributions. Ensure your payroll software is on the current CPF rates.

For the official wage ceilings and CPF rate tables, see cpf.gov.sg.

If you fall below the AIS threshold

Employers with fewer than 5 employees and not registered for AIS still must give each employee a hard-copy Form IR8A by 1 March each year. The employee then enters the figures manually on their personal tax return. Even so, voluntary registration for AIS is recommended — your employees will appreciate the auto-populated tax return.

Year-end IR8A checklist for SMEs

1. Confirm payroll software is on the current Singapore CPF/IRAS configuration.
2. Reconcile December payroll against the year-to-date CPF submissions.
3. Pull benefits-in-kind data (cars, accommodation, etc.) and value per Appendix 8A rules.
4. Update Appendix 8B for any ESOP/ESOW exercises or vests during the year.
5. Run a draft IR8A for each employee and circulate for self-check by mid-February.
6. Submit AIS file via myTax Portal by 1 March.
7. Retain supporting payroll records for at least 5 years for any IRAS query.

The IR8A and AIS process is mechanical once set up — but the cost of getting it wrong falls on both employer (fines, prosecution) and employee (under-assessed tax, late penalties). Build the calendar into your year-end close and treat AIS as a critical compliance milestone, not an afterthought.

— The Editorial Team, Raffles Corporate Services