Under the Auto-Inclusion Scheme, employers transmit employment income data to the Inland Revenue Authority of Singapore electronically. That information is then pre-filled into each employee's tax return, so employees do not report their salary themselves.
Participation
The scheme is compulsory for employers above an employee count threshold, and voluntary below it. Because the threshold has been progressively lowered, employers who were once outside it may now be within it. Submission deadlines fall early in the year following the income year, and late or incorrect submission attracts penalties.
- Employers in the scheme do not issue hard-copy IR8A forms to employees
- Data must be submitted in a prescribed electronic format
- Amendments require a separate correction submission rather than a reissue
Why it matters when hiring internationally
Being in the scheme changes the year-end process: the employer's submission becomes the authoritative record, and employees rely on it being right rather than checking a form they were handed. For a company with a small Singapore team, knowing whether it falls within the compulsory threshold is a specific question worth answering rather than assuming.