The IR8A form is a form that tax payers in Singapore use to file their tax returns. Contrary to paying taxes on a monthly basis, they pay their 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. For convenience, many employers also opt for the AIS (Auto-Inclusion Scheme). This is an online form equivalent to the IR8A. It is more convenient because it allows the employers to declare the income of their employees and submit it electronically as compared to manually filling the form. The information also gets posted directly on the tax portal and saves time that would have been spent to manually update the information on the portal. As of the year 2015, all employers with more than 11 employees were required by law to participate in AIS. The required tax files include the following;
a) Form IR8A
This is for all the employees in the firm.
b) Appendix 8A
This is for the employed who have any kind of benefits.
c) Appendix 8B
This is for the employees with profits accrued from either share ownership or stock option.
d) Form IR8S
This is in case of any excess CPF payments made.
There are several steps to follow and things to note when you are filing IR8A in Singapore. These steps are as explained below;
This is the first step when you are filling the IR8A form. These basic details include full name, residential address, rank and salary, date of birth, nationality, gender etc.
There are 4 main classifications of income;
• Gross salary, leave pay, overtime pay, fees and wages
This is the first category of incomes received. Most of the basic payments you receive will fall into this category. However remember that any allowances and commissions received should be excluded in this category.
This is assessed in the year when the employee is entitled to the bonus.
• Director’s fees
Just like the bonuses, this category is 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.
These are the other less common types of incomes that are not included in the categories listed above. They include the following;
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.
After the form has been fully filled, it is signed off and sent individually to all the employees of the firm. At this point, the obligation of the employer is complete. If after submission there are any changes that should be made on the income of the employee, submit only the amount difference. The changes should only affect the select employees’ amount and not the overall value. This is for the 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.
It is the duty of all employers to fill the IR8A forms for their employees. If the employer has more than 11 employees under him, then he is required by the law to participate in AIS. The process of filing IR8A in Singapore is quite similar to all employees whether under AIS or not, but the process of submission may differ. It is important for the employers to notify their employees after they have submitted their annual tax incomes. This gives the employees the chance to file their begin filing their incomes as at the first day of March.
Learn more about filing IR21.