Why is IR8A important?
A Simple Guide to Mandatory Filing of Employee Earnings in Singapore
Individuals and businesses alike are required to file taxes annually. For Individual taxes, employers are required to report to the Inland Revenue Authority of Singapore (IRAS) on how much their employees have earned under employment in the preceding year, from 1 Jan to 31 Dec. This reporting is to be made through the IR8A form (download here).
We have prepared a simple guide on IR8A filing for employers. There are also different sections and sub-forms that employers need to take note of:
Full-time resident employee;
Part-time resident employee;
Company director (including a non-resident director);
Board members receiving Board/Committee Member Fees;
Employees who have left the organization but were in receipt of income in 2021 (e.g. stock options gains)
Employees who were given benefits-in-kind, e.g. fringe benefits or other non-cash perks.
Employees who obtained profits or gains from Employee Stock Option Plans (ESOP) or other forms of Employee Share Ownership (ESOW) Plans.
If the employer has made excess CPF contributions to the employee, and/or have or will have claimed CPF refunds.
The IR8A filing can be done through Auto-Inclusion Scheme (AIS) or through manual filing.
1. Submit Through AIS
The Auto-Inclusion Scheme (AIS) for Employment Income allows employers to file the IR8A information electronically. The information submitted will be automatically included in the employees’ income tax assessment, which helps both the employer and employee to complete filing in a hassle – free manner.
The AIS is mandatory for employers with six or more employees, and is optional for employers with five or less employees. IRAS recommends that employers provide employees with copies of their individual IR8A forms for personal record keeping. In the event that an employer employs a third party payroll software that supports IR8A, the employer can then generate the information and push it into IRAS for a more seamless experience.
2. Submit Manually
If an employer prefers to submit the IR8A forms manually, this can be done before 1st March each year. Alternatively, the employer can provide the IR8A and its related forms to both local and foreign employees before March 1 so they can file them individually.
If you would like to know more about the IR8A preparation and submission process or have a free Human Capital consultation with us, kindly contact K.Merleone at +65 8010 1470 or email@example.com now!