Demystifying AIS Submission to IRAS: A Comprehensive Guide by Adaptive Pay Solutions

 

Key takeaway: According to Section 68(2) of the Income Tax Act, if your company has 5 or more employees, you're required to enrol in the AIS. This also applies to companies with fewer than 5 employees if they've received a ‘Notice to File Employment Income of Employees Electronically’ under AIS.

If you have 5 employees and haven't joined the AIS yet, it's recommended that you do so. The AIS allows employers to electronically submit their employees' employment income information to the Inland Revenue Authority of Singapore by March 1 of each year.

Understanding AIS

AIS aims to simplify tax filings for employees by allowing employers to submit employment income directly to IRAS online. Employees can go to myTaxPortal to check their payslips to see their employment income and auto-included information through the ‘Income, Deductions and Relief Statement’ when they file their individual income tax returns.

In this guide, we will share more details about AIS to make submissions a breeze.

AIS registration

The AIS registration for YA (Year of Assessment) 2024 is closed. However, registrations for YA 2025 will start from April 1, 2024, to December 32, 2024. If you missed the registration deadline on December 31, you can register for the next YA from April to December of the following year.

To register, visit myTaxPortal and choose from any of these registration methods:

 

1. Personal Tax

·     Enter your Singpass

·     Choose ‘More,’ then ‘Register for AIS.’

·     Choose your organisation’s UEN type and input the tax reference number

·     Click ‘Next’

·     Fill out the registration details and click ‘Register.’

2. Business Tax

This registration process is only for employers with an existing Preparer/Approver role with the IRAS’ digital service (such as Corporate Tax and GST).

 

·     Enter your UEN/Entity ID and Singpass before logging in

·     Pick ‘Employers,’ ‘Register for AIS’

·     Click ‘Next’

·     Complete the registration by providing the necessary details and clicking ‘Register.’

3. Tax Agent Login via Business Client

This applies only to tax agents with existing Approver or Preparer roles with the IRAS’ digital service.

 

·     Enter the Tax Agent Company’s UEN or Entity ID and your Singpass to log in.

·     Choose ‘Employers,’ ‘Register for AIS’

·     Pick your client’s organisation UEN type and provide the tax reference number.

·     Click ‘Next’

·     Fill out the details and click ‘Register.’

Who is expected to participate in the AIS?

Starting YA 2024, joining the AIS is compulsory for the following types of employers:

1. Those who have 5 or more employees, including:

 

·     Full-time and part-time resident employees

·     Non-resident employees (this includes employees who are based overseas and are required to provide their services in Singapore during the year)

·     Company director, including a non-resident one

·     Pensioner

·     Board member receiving Committee or Board member fees

·     Employee who left the organisation but has received income in the reporting year

2. Those who received the ‘Notice to File Employment Income of Employees Electronically under the AIS.’

Voluntary AIS participation

Employers are encouraged to participate in the AIS, even if they have less than 5 employees.

Experience Adaptive Pay

Adaptive Pay makes tax filing straightforward for AIS employers by removing the need to distribute and fill forms IR8A, IR8S, Appendix 8B, and Appendix 8A. Instead, Adaptive Pay’s payroll module automatically prepares and submits these documents, saving time and reducing errors for both employers and employees.

As a verified and approved partner of the IRAS, Adaptive Pay allows you to directly submit to the AIS without the hassle of handling forms. Request a demo to discover how our software can streamline your tax filing process, saving you valuable time and effort.