Need help registering for AIS?
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Is your business ready to use the Auto Inclusion Scheme (AIS) to electronically submit your employee earnings data to IRAS? This is a new scheme introduced by the Government of Singapore in order to simplify the tax system, making tax filing easier and more efficient.
The AIS is a tax scheme that applies in Singapore, especially for entrepreneurs. This scheme is legally enforceable and strictly administered by the Internal Revenue Authority of Singapore (IRAS). AIS enables companies to more easily communicate their employees' earnings information digitally.
The purpose of this scheme is to make it easier to calculate income tax for employees in Singapore by entering the information provided by the company or employer through AIS automatically when they are preparing their income tax returns. AIS also intends to make the burden of filing annual tax returns easier. Furthermore, the AIS registration process is available online via the myTax IRAS website.
Companies that have received a "Notice to File Electronically Under the Auto-Inclusion Scheme (AIS)"
Other employers are urged to sign up for AIS on their own initiative. Please keep in mind that the employee count is based on the total number of unique employees/employees throughout the year. For example, if you recruit an employee during the calendar year 2020 and he or she departs after one month, you will still be recognised as having one employee for the year.
This is especially significant if the firm has more than six employees. For the purposes of AIS registration, the word "employee" includes all directors and anybody with whom you must submit Form IR8A (Refund of Employee Remuneration) or Form IR21 (Notice of termination of employment or departure of a non-Singaporean employee from Singapore).
This scheme key for companies in Singapore, making it easier for employees to file their income tax in Singapore as their employment income information is entered automatically. In addition, in the future, employees will also benefit from a non-filing service (NFS) if the company submits income tax information through AIS.
In addition, if the company does not comply with AIS, the company can be subject to a fine of up to $1,000, which could be detrimental to the company as a whole. AIS is a mandate from the state, so as a company that complies with state regulations, you should comply with these rules for the sake of your business continuity in the future. Even companies with eight or more employees who have not been notified by IRAS need to contact the Authority themselves.If your company is going to register AIS, there are four types of forms that you must include. The first is mandatory, and the other three forms are supported. They are as follows:
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