Annual Employee Remuneration Reporting
ie Employee Earnings (IR8A, Appendix 8A, Appendix 8B, IR8S)
Every year starting this month January up to February, all employers will be very busy fulfilling this statutory obligation.
We also received many enquiries to provide assistance in this aspect.
Let me share some important takeaways here…
All 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 all your employees who are employed in Singapore by 1 Mar each year.
Employers need not submit the forms to IRAS.
Employers under Auto Inclusion Scheme (AIS) For Employment Income
Employers must submit their employees’ income information to IRAS electronically by 1 Mar every year under the AIS.
The information submitted by employers will be shown on the employees’ electronic tax return and will be automatically included in their income tax assessments.
Employers under the AIS do not need to issue Form IR8A, Appendix 8A, Appendix 8B and Form IR8S to their employees.
Employers Not Under The AIS For Employment Income
Employers who are not under the AIS for Employment Income have to provide the required forms to their employees (where applicable) by 1 Mar each year to file their income tax returns:
* Form IR8A
* Appendix 8A
* Appendix 8B
* Form IR8S
Employers need not submit the forms to IRAS.
Penalties
In cases where the error/omission/discrepancy in the tax return was made without any intention to evade taxes , the taxpayer may, under the Income Tax Act :
a. face a penalty up to 200% of the amount of tax undercharged;
b. be fined up to $5,000; and/or
c. be imprisoned up to three years.
In cases where the error/omission/discrepancy in the tax return was made with intention to evade taxes , the taxpayer may, under the Income Tax Act:
a. face a penalty up to 400% of the amount of tax undercharged;
b. be fined up to $50,000; and/or
c. be imprisoned up to five years.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
www.corporatebackoffice.com.sg
