【Singapore Company Registration Tips】Singapore Inland Revenue Authority: Employers must submit their employees' 2023 income information by March 1, 2024.-FOZL

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【Singapore Company Registration Tips】Singapore Inland Revenue Authority: Employers must submit their employees' 2023 income information by March 1, 2024.

Already participated Auto-Inclusion Scheme (AIS) Employers (businesses) under the Auto-Inclusion Scheme, or those who hired five or more employees in 2023, are obligated to comply. They should have received relevant letters from the Inland Revenue Authority of Singapore (IRAS) in January 2024.

From the 2022 assessment year, all employers with five or more employees must join the Auto-Inclusion Scheme. It is expected that approximately 110,000 employers will participate in the scheme in 2024, the highest since the scheme's implementation.

The Inland Revenue Authority of Singapore (IRAS) stated that employers who fail to declare employee income information before March 1, 2024, may be fined up to S$5,000. Key personnel of the offending company, such as directors or partners, may also face a fine of up to S$10,000, imprisonment for up to 12 months, or both.

In 2024, over 2 million employees will benefit from pre-filled tax returns or No-Filing Service due to their employers' participation in the Auto-Inclusion Scheme, eliminating the need for manual income entry. Timely submission of employee income information by employers is crucial. Otherwise, the pre-filled tax return will have missing data, leading to inaccurate tax returns and delaying the tax assessment of employees by the authorities.

Employers must also ensure that they submit complete and accurate employee income information to the tax authority. Submitting inaccurate employee income information is illegal and the fine may be up to twice the underpaid tax. If there have been any past errors or omissions in employee information, the authority also encourages employers to voluntarily disclose them immediately. Employers can Voluntary Disclosure Programme (IRAS Voluntary Disclosure Programme) to receive a lighter penalty.

The Inland Revenue Authority of Singapore (IRAS) pointed out that common errors when employers submit the Auto-Inclusion Scheme (AIS) declaration include: failure to declare taxable benefits in kind, such as gifts and awards exceeding S$200, or employee discounts exceeding S$500; failure to declare employee income or benefits other than salaries, such as premiums paid for employees, or pensions or stock plans for overseas employees; and underreporting of stock or stock option gains received by employees.

FOZL assists Singaporean and overseas clients registering Singapore companies and provides clients with accounting ， annual audit ， audit ， tax filing ， trademark registration ， business consulting ， family office establishment and other services.