Inaccurate Tax Assessments Affect 140,000 Workers; Repeat Offenders Fined Over $790,000

In Singapore, around 11,000 employers, or one in ten participants in the Inland Revenue Authority of Singapore’s (IRAS) Auto-Inclusion Scheme (AIS), failed to meet the 2024 filing deadline. This delay resulted in errors or delayed tax assessments for approximately 140,000 employees, as reported by IRAS on February 11.

The failure to file on time led to legal actions against 654 repeat offenders, who collectively faced fines totalling more than $790,000. Many of the businesses fined were from the food and beverage, wholesale trade, and construction sectors. IRAS has since reminded employers to submit their employees’ income details by March 1.

The deadline applies to all businesses enrolled in the AIS, including those with fewer than five employees in 2024, as well as companies that expanded to five or more employees in the same year. Employers who miss the filing date may incur a fine of up to $5,000. Key individuals in non-compliant companies, such as directors or partners, can be fined up to $10,000, face up to 12 months in prison, or both.

In 2025, 12,500 new employers joined the AIS, bringing the total number of participating employers to around 120,000. These new businesses were informed of their AIS obligations in January through official correspondence from IRAS. Approximately 2 million employees are expected to benefit from the scheme this year.

The AIS enables employers to submit employees’ income details directly through payroll software or online via the myTax Portal. This system eliminates the need for employees to manually input their income, thereby reducing the risk of errors.

However, IRAS has observed common mistakes made by employers, such as failing to report taxable benefits-in-kind, misreporting accommodation benefits, or under-reporting income from stock options. Employers who submit incorrect information risk a penalty that could be up to double the amount of tax undercharged.

IRAS encourages employers to voluntarily correct any past mistakes in their submissions under its voluntary disclosure programme, which offers reduced penalties for prompt disclosure.