Tax Filing For Your Employees in Singapore

Being in Singapore, we are aware of the various types of taxes we need to pay as individuals. However, do you know the taxes you need to file for your employees as a business owner?

IR8A - Reporting Employee Earnings

“Employers are required by law (S68(2) of the Income Tax Act) to prepare form IR8A and Appendix 8A, Appendix 8B or Form IR8S (where applicable) for employees who are employed in Singapore by 1 March each year.”

The IR8A form must be filed for all employees in your organization by 1 March every year. This form includes all the necessary information pertaining to your employees’ income information for the preceding year. 

There are a few other forms that need to be filed if it is applicable to your employees:

• Appendix 8A - For employees who were provided with benefits in kind

• Appendix 8B - For employees who derived or gained profits from Employee Stock Option Plans or other forms of Employee Share Ownership Plans

• Form IR8S - If excess CPF contributions were made on your employees’ wages and/or have or will claim refund on excess contributions

If your organization is in the Auto-Inclusion Scheme (AIS), you only need to digitally submit the information to IRAS and the information will be automatically included in your employees’ electronic Income Tax returns. 

If your organization is not in the AIS, please provide your employees with the hardcopy forms by 1 March for them to file their own returns. Employers do not need to submit any information to IRAS directly. 

AIS participation is compulsory for all organizations with 5 or more employees, or who have received the “Notice to File Employment Income of Employees Electronically under the Auto-Inclusion Scheme (AIS)”. However, it is definitely more convenient to participate in the AIS, so do consider registering to be a part of it soon!

IR21 Tax Clearance for Foreign and SPR Employees

Whenever a non-Singapore Citizen employee resigns, goes on an overseas posting or plans to leave Singapore for more than 3 months, employers are required to file tax clearance for them. 

It is the employer’s responsibility to ensure that all IR21 forms are filed in a timely manner and that all final salaries are withheld until the submissions have been completed. 

Once a non-Singapore Citizen employee has resigned, employers will need to file the IR21 form and wait for IRAS to revert with the necessary tax amount to be paid. This amount needs to be paid by the employer first and deducted from the employee’s withheld salary thereafter. 

Finding it a hassle to get all this done with your incessant workload piling up?

Fret not! Engage us to help you with the nitty gritty details of tax filing for your employees - click the little WhatsApp logo below to get in touch with us today!