The Auto-Inclusion Scheme (AIS) in a nutshell
When is the AIS necessary?
According to the Income Tax Act, all companies must submit their employment information to IRAS from 6 January to 1 March yearly. The act was passed by the Inland Revenue Authority of Singapore (IRAS).
This is where the Auto Inclusion Scheme comes in. Understanding that this administrative process may be time-consuming, especially for the larger organisations, companies with at least 6 employees must join the Auto-Inclusion Scheme for their employee information to be entered electronically.
In addition, if you’ve received a ‘Notice to File Employment Income of Employees Electronically under the Auto-Inclusion Scheme (AIS)’, you’ll need to proceed with the registration as well.
Who do I include in the AIS?
Employees to be registered include:
- Full-time and part-time resident employees
- Non-resident employees (both based in Singapore and overseas)
- Company directors (residents and non-residents)
- Board members receiving fees
- Employees who have left the organisation but were in the receipt of income in the stated reporting year (for the 2022 Year of Assessment (YA), the income derived includes staff in 2021)
How does AIS help my company?
If your relevant staff count falls below 6, you are still welcome to join the AIS.
That’s because this scheme streamlines the submission of employment income information. From there, IRAS can easily include this information when your employees file for tax returns.
From the employer’s standpoint, you wouldn’t need to issue hardcopy IR8A forms (the form that contains employees’ income information). Instead, you can simply share with your staff a statement of their earnings (for their reference). In future, your employees will also benefit from a much simpler tax filing process.
Currently, the AIS registration deadline for Year of Assessment (YA) 2022 is open till 31 December 2021.
The AIS process simplified
|As the employer, you start by preparing the required information for employment income.|
|Then, be sure to submit the gathered information by 1 March and through a suitable AIS software.|
|Following this, IRAS proceeds to auto-include the information you’ve provided into your employees’ tax returns.|
|Your staff can easily file their tax returns with their information already included by the AIS.|
Glide on the AIS process with Kayaroll
Here at Kayaroll, our team strives to make your Auto Inclusion Scheme (AIS) process even smoother. With our leading payroll software that is IRAS-approved and highly user-friendly, tap onto our complimentary services when you register as the first 100 customers today!
As a payroll software that is highly compatible with the AIS in Singapore, we assist in generating files that comply with the IRAS’ requirements. Your company will be aligned with the AIS submission and deadline requirements, so you can have peace of mind and focus on the more crucial aspects of your business.
Our goal at Kayaroll is simple. We wish to empower SMEs, startup owners and their employees with the best payroll solutions. Taking on your leave management systems, AIS process and more, your business is sure to be elevated with our fresh approach. Wish to enquire about our payroll software today? All you have to do is drop your questions into the pop-up chat on our site!