Tax season has a way of sneaking up on even the most organised HR teams. One minute it is December, the next it is March, and somewhere in between sits a filing deadline that carries real consequences if you miss it. For employers in Singapore, understanding what is required and by when makes all the difference between a smooth payroll close and a stressful scramble.
This guide walks you through everything you need to know about the IR8A auto inclusion scheme for the 2026 Year of Assessment (YA 2026). Whether you are running a small team or managing a growing headcount, here is what employers need to get right.
What Is the IR8A Form?
Form IR8A is the annual return that Singapore employers must file with the Inland Revenue Authority of Singapore to report employment income paid to each worker during the calendar year. It feeds directly into employees’ personal income tax assessments.
Employers are required by law under Section 68(2) of the Income Tax Act to prepare Form IR8A and Appendix 8A, Appendix 8B, or Form IR8S (where applicable, prior to YA 2026) for employees who are employed in Singapore.
It applies regardless of employment duration or residency status, so part-timers, directors, and foreign pass-holders are all included.
What Is the Auto-Inclusion Scheme?
Under the Auto-Inclusion Scheme (AIS), employers submit their employees’ income information directly to IRAS electronically, and this information is then auto-included in the employees’ tax returns. Employees do not need to manually declare their employment income when they file as it is already pre-populated.
Approximately 123,000 AIS employers were due to submit their 2025 employee data by 1 March 2026, enabling IRAS to pre-fill over two million individual tax returns. That scale alone tells you how central this scheme is to Singapore’s tax infrastructure.
For HR leads, this also means any errors in your AIS submission flow directly into your employees’ tax assessments. Getting it right the first time is far easier than correcting it after the fact, and if your team is going through job redesign or restructuring, payroll data accuracy becomes even more critical during the transition.
Who Must Participate?
In 2026, the AIS is compulsory for employers who hired five or more employees, including part-timers and directors, during the 2025 calendar year. Businesses notified via the “Notice to File Electronically” must submit data through the myTax Portal.
A few things worth knowing:
- Once you are enrolled in AIS, you remain in the scheme even if your headcount later drops below five.
- Foreign employees on Employment Pass, S Pass, Work Permit, Letter of Consent, Personalised Employment Pass, and ONE Pass are all in scope.
- Employers with fewer than five employees may issue a physical copy to employees, who then declare the income themselves. However, IRAS strongly encourages all employers to use AIS regardless of headcount.
What Forms Are Involved?
IR8A is the main form, but depending on your employees’ compensation packages, you may need to file additional documents alongside it.
Depending on the employee’s compensation, the forms you may need to prepare include Form IR8A as the primary income return, Appendix 8A for non-cash benefits provided to employees, and Appendix 8B for stock options granted to employees.
One significant change for YA 2026 that employers should note: IRAS has officially discontinued Form IR8S for current year filings. Employers should now report any excess or voluntary CPF contributions directly under item d6 of the main IR8A form. If your payroll software still generates an IR8S automatically, update it before your next submission.
There is also a change in how leave encashment is reported. Effective YA 2026, employers must report payments for the encashment of unutilised leave under “Other Allowances” in Section D, rather than under “Gross Salary.”
What Income Must Be Reported?
Form IR8A captures a broad range of employment-related income. This includes gross salary, bonuses, director’s fees, allowances, gratuities, commissions, retrenchment payments, and leave pay.
Some of the most commonly misreported items include:
- Transport allowance, which is taxable unless it is a direct reimbursement of business mileage
- Housing allowance, which is taxable in full unless paid as a fully accountable reimbursement
- Telephone allowance, which is taxable unless tied to a specific work line
- Employer-funded private medical insurance above the IRAS-permissible exemption tier
- Employer-paid club memberships and school fees for expatriate children
NRIC or FIN mismatches are among the most common errors IRAS picks up. A typo on the identification number means the income lands in nobody’s tax return. Double-check all employee identification details before submission.
What Is the Deadline?
The deadline is 1 March 2026 for YA 2026, covering income earned in 2025. This date is fixed and non-negotiable. IRAS does not routinely grant extensions.
For AIS employers, submission is done electronically through the myTax Portal, the Validation and Submission Application (VSA), or an IRAS-approved payroll software. AIS employers do not need to issue hardcopy IR8A forms or appendices to employees. The submitted information will be pre-filled in the employees’ tax returns. That said, it is good practice to provide employees with a statement of earnings so they can verify the figures.
What Happens If You Miss the Deadline or File Incorrectly?
The penalties are worth taking seriously. Failure to report accurately can lead to heavy penalties including fines of up to S$5,000 and up to 200% of undercharged tax, and potential imprisonment.
In practice, IRAS sends a reminder for first-time misses. The fines tend to bite when filings are wrong rather than late, particularly when an allowance is misreported as exempt, a benefit-in-kind is omitted, or one employee is missed from a multi-entity payroll.
Corrections can be made after submission. Employers can amend IR8A and AIS records through the myTax Portal, but timely and accurate first submissions remain the best approach.
What About Foreign Employees?
Foreign employees require extra care. Once a foreigner gives notice, employers must file Form IR21 at least one month before their last day and withhold the final salary. IR8A is not used for that employee.
For employees who worked across both Singapore and overseas locations during the year, income apportionment may apply. The split depends on actual days worked in each location, and specialist payroll advice is recommended if this applies to your workforce.
Making AIS Work for Your Business
The IR8A auto inclusion scheme, when managed well, significantly reduces the administrative load on HR and payroll teams. Employees get accurate pre-filled returns, IRAS gets clean data, and your business stays compliant without the back-and-forth of paper forms.
The key is having the right systems and processes in place well before March. That means verified employee records, updated payroll software that reflects YA 2026 changes, and a clear internal checklist covering every form that needs to be filed.
If your current HR software is not equipped to handle AIS submissions seamlessly, it may be time to review what you are working with. IQ Dynamics offers HR and payroll solutions built for Singapore compliance, helping businesses manage submissions accurately and on time. Speak to the IQ Dynamics team to find out how the right system can take the pressure off your HR team this tax season.
