Penalties for repeat offenders surpassed S$1 million, according to Inland Revenue Authority of Singapore
Over a thousand employers in Singapore have been prosecuted by the local tax authority after repeatedly failing to submit their employees' income data under the Auto-Inclusion Scheme (AIS).
The AIS simplifies the tax filing process by requiring employers to submit employee earnings directly to the Inland Revenue Authority of Singapore (IRAS).
More than 12,000 AIS employers failed to submit on time in 2025, according to the IRAS, leading to inaccurate or delayed tax assessments for over 160,000 employees.
Some 1,207 repeat offenders were prosecuted in 2025, resulting in penalties exceeding S$1 million.
"These repeat offenders would have received multiple letters, emails and/or calls from IRAS to remind them of their filing obligations," the authority said in a media release.
"Majority of these employers are in the food and beverage, wholesale trade, and construction industries."
Employment income deadline
A total of 123,000 employers are under the AIS, giving over two million employees the convenience of pre-filled tax returns, No-Filing Service (NFS), or Direct Notice of Assessment (D-NOA) for Year of Assessment (YA) 2026.
This year, the IRAS set the 2025 employment income submission to March 1, ahead of the tax filing season.
The requirement applies to all existing AIS employers, including those who have less than five employees and those who started having five or more employees during 2025.
"AIS employers that do not file by 1 March 2026 can be fined up to $5,000 under Section 94(1) of the Income Tax Act 1947," the IRAS said.
"Key personnel of non-compliant employers, such as company directors or precedent partners, can be fined up to $10,000, and/or face imprisonment for a term of up to 12 months if they fail to respond to IRAS' notices."
The IRAS also urged employers to submit complete and accurate employment income information as it will be used to calculate employees' tax bills.
According to the IRAS, common errors by employers include:
- Omitting taxable benefits-in-kind (cash/non-cash) and employee income/benefits employee income and benefits outside the payroll system
- Incorrect reporting of accommodation benefits
- Under-reporting of stock/options gains stock option gains
The IRAS warned that submitting inaccurate information is an offence and may result in a penalty up to double the amount of tax undercharged.
"Employers are encouraged to voluntarily disclose any past errors or omissions in their employees' information immediately, for reduced penalties under IRAS' Voluntary Disclosure Programme," it added.
