Payroll
Form IR8A + Appendices
The IR8A form is a form that tax payers in Singapore use to file their tax returns. In contrast to paying taxes on a monthly basis, it allows employers to pay taxes on an annual basis.
The IR8A form is created for all the employees of a firm whether they are part time, full time, residents or nonresidents, etc. All employers should print out the forms individually and give them to their employees on the first day of March every year.
Appendix 8A and Appendix 8B are the other required tax files. Appendix 8A is for the employed who have any kind of benefits, while Appendix 8B is for the employees with profits accrued from either share ownership or stock option.
For convenience, many employers opt for the AIS (Auto-Inclusion Scheme) when filing them.
What is the Auto-Inclusion Scheme (AIS)?
Under AIS scheme, employer has to submit its employees’ income information to IRAS electronically. Under this scheme, employers submit electronically the employment income information of their employees to IRAS. The submitted information will then be automatically included in the employees’ income tax assessment so that they do not need to declare these incomes themselves. You do not need to issue the same forms to your employees separately.
What you should know
Companies under AIS
If you are an employer with 11 or more employees, you must participate in AIS. Employers who have received the “Notice to File Employment Income of Employees Electronically” must also take part.
Companies not under AIS
For employers who are not under AIS, you’re required to provide the required forms to your employees by 1st March for them to file their income tax returns. Companies who are not required to file electronically can also join the AIS on an opt-in basis. The registration for YA 2020 began in the 2nd quarter of 2019.
Filing the IR8A Form and Appendices
You should follow the below steps when you are filing IR8A and Appendices in Singapore.
Step 1: Enter the Basic Employment Details
The basic details include
- Full name
- Date of birth
- Nationality
- Gender
- Residential address
- Position and salary, etc.
Step 2: Categorize Your Income
The main classifications of income include:
- Gross salary, Leave pay, Overtime pay, Fees and Wages – While all basic payments you receive will fall into this category, you must exclude any allowances and commissions received from this category.
- Bonus – This is assessed in the year when the employee is entitled to the bonus.
- Director’s fees – This category is also assessed during the year when the director becomes entitled to the fees. In the event that the fees are approved in the arrears, the director becomes entitled on the date when the fees were approved in the AGM or EGM of the company. In the event that they are approved in advance, the director is entitled when the services for the year are rendered.
- Allowances – All kinds of allowances from cash top up to staff referral fees.
- Lump sum payments – These include retirement and retrenchment benefits. However, it is important to note that the compensation in case of loss of office are not taxable.
Step 3: Signing Off and Sending
After filling the forms, your mandate as the employer ends as soon as you sign them off and send them to all your employees.
In case of any necessary changes on the employee income figures, you only need to submit only the amount difference of the specific employees. This process only applies to employers on AIS.
If you are not registered under AIS, you will have to fill a new form and then fill in the right amount. You can indicate ’’additional’’ to indicate the additional amount for the employee. You can also opt to indicate “revised’’ to show the entire income or deduction details and give your employee for resubmission.
Deadlines for Submission
Please remember to submit these forms to IRAS by 1st March if you’re under AIS, or provide these forms to your employees by 1st March if you’re not.
We are Experts in Filing Form IR8A + Appendices
We hope that you have gained more clarity on how to file your employees’ earnings. If you need expert assistance, our team at Tianlong Services is well versed with filing Form IR8A + Appendices and are able to complete the employee earnings reporting efficiently. Please contact us for more information of the filing requirements.
