The Inland Revenue Authority of Singapore (IRAS) has created many avenues which enable the taxpayers of Singapore to ensure that they are more able to fulfil their various tax obligations. It has done so through various different schemes and programs.
One of the most well-known schemes which IRAS has put in place in order to facilitate the payment of taxes in Singapore is the Auto-Inclusion Scheme. The Auto-Inclusion Scheme in Singapore allows certain employees to no longer be required to submit tax information because it permits their employers to do so on their behalf.
If necessary, we will also contact IRAS or any other authorities connected to taxation in Singapore on your behalf so that you can be certain that we have fully managed any tax-related problems you might have.
The Auto-Inclusion Scheme in Singapore was introduced by IRAS to allow any employer based in Singapore to submit their employees’ employment income information on their behalf. The Auto-Inclusion Scheme allows all such employers to submit this information electronically to IRAS.
Once IRAS has received this information, it will automatically include it as part of each relevant employee’s income tax assessment. IRAS will then auto-include this information to their employees’ tax assessment. Therefore, when these employees subsequently file their income tax returns, they are not required to submit their employment income information because this information would have already been received by IRAS.
Starting from the 2020 year of assessment (YA), there is a requirement for certain Singapore-based employers to be participants in the Auto-Inclusion Scheme. Employers who are required to participate in this scheme are those who either employ a minimum of seven employees or have received the Notice to File Employment Income Of Employees Electronically under the Auto-Inclusion Scheme (AIS).
This notice has been gazetted under S68 (2) of the Income Tax Act. The IRAS has also provided a link on its website which allows anyone who is interested to find out if a specific employer is to be part of the Auto-Inclusion Scheme according to the criteria which are to be followed.
Singapore attracts investments from around the world by reducing its corporate income tax rate and introducing different tax incentives. Singapore has one of the lowest corporate tax rates in the world.