Paying taxes might not be fun, but it’s an essential part of life. Tax season is a time to review earnings, expenses, and reflect on how taxes were used over the past year. For employees, it’s about receiving paychecks and paying taxes. For employers, it’s about reporting employee earnings and taxes to the government using Form IR8A.

What is IR8A

Form IR8A is completed by employers for specific employee groups, including full-time, part-time, and non-resident employees, as well as company directors. However, it generally excludes foreign employees who worked outside Singapore for a long period.

GENERAL

1. As an employer, you are required to complete Form IR8A and, where applicable, Appendix 8A / Appendix 8B / Form IR8S to report the remuneration for the following employees:
   (a) Full-time resident employees;
   (b) Part-time resident employees;
   (c) Non-resident employees, including those based overseas but who rendered services in Singapore and whose employment income was not reported for tax clearance via Form IR21;
   (d) Company directors (including non-resident directors);
   (e) Board members receiving Board/Committee Member fees;
   (f) Pensioners;
   (g) Employees who left the organization but received income in 2024 (e.g., stock options gains).

Exclusions:

(i) Foreigners whose tax clearance was obtained through Form IR21 and who did not earn any other Singapore-sourced income apart from the income covered by the clearance;
(ii) Foreigners contracted by a Singapore employer to be based overseas who provided their services entirely outside Singapore throughout the calendar year, with no physical presence in Singapore;
(iii) Foreigners who left the organization and required filing of Form IR21.

2. Form IR8A and Appendix 8A (if applicable) must be completed and signed by the company secretary, director, precedent partner, sole proprietor, manager, honorary secretary/treasurer of Clubs and Associations, local representative of a non-resident company, or a person authorized by the employer. For computer-printed forms, a signature is not mandatory; however, the authorized person’s name, designation, contact number, and the date must be provided.
   
3. The completed Form IR8A and Appendix 8A (if applicable) for the year ending 31 Dec 2024 should be given to your employees by 1 Mar 2025. Do not send the completed forms to IRAS unless requested to do so.

AUTO INCLUSION SCHEME (AIS)

If your organization is enrolled in the Auto Inclusion Scheme (AIS), you are required to submit your employees’ employment income details to IRAS electronically by 1 March 2025. Ensure that the information provided to IRAS is accurate and complete. There is no need to issue Form IR8A and/or Appendix 8A/Appendix 8B/Form IR8S to your employees. However, you may choose to provide your employees with a separate statement of earnings for their personal records. Kindly inform your employees that they should not include their employment income and deductions in their tax form, as this information will be automatically included in their income tax assessments.

The returns required under paragraphs 3 and 4 must be submitted by 1 March 2025. According to Section 94 of the Income Tax Act, employers who fail to meet this deadline may face a fine of up to $5,000 upon conviction, or imprisonment for up to 6 months in default of payment. Employers are responsible for ensuring the accurate and complete reporting of their employees’ employment income information. Under Section 95 of the Income Tax Act, any individual who provides incorrect information affecting another person’s tax liability may be guilty of an offence, liable to a penalty of up to twice the amount of tax undercharged, and may face a fine of up to $5,000, imprisonment for up to 3 years, or both.

COMPLETING THE FORMS

Follow these guidelines when completing the forms to ensure the accuracy of the information reported for your employees.

You must provide the date of commencement of employment if your employee started their employment in 2024 or before 1 January 1969. If the employee ended their employment in 2024, indicate the date of cessation. In cases where there are multiple commencement and cessation dates within the same year for the same employee, report the earliest commencement date and the latest cessation date for 2024.

Expert Guidance from Cloud Consulting

Navigating tax matters can be overwhelming, and IR8A compliance is just one part of a business's larger tax obligations. Managing these efficiently requires both time and expertise, which can be challenging for busy business owners.

At Clooud Consulting, our team of seasoned professionals is here to support you every step of the way. From handling your IR8A submissions to providing comprehensive tax solutions, we ensure your tax matters are expertly managed, saving you valuable time and effort.

Why let taxes become a burden when they can be turned into an advantage? With our guidance, you can focus on growing your business while we handle the complexities. Contact us today and let our experts simplify your tax journey, from start to finish.