1.Employers are required by law to prepare an annual Form IR8A for their employees who are employed in Singapore by 1 March each year. Form IR8A is an annual statement of the total remuneration received by each employee from the company. Employees can used the details of remuneration from this Form IR8A to submit their own individual income tax return to IRAS by 15 April each year.
2. Employers must complete and give Form IR8A for all employees such as follows:
- Full-time resident employee
- Part-time resident employee
- Non-resident employee including those who are based overseas and are required to render service in Singapore during the year
- Company director including a non-resident director
3. The Form IR8A must be completed and signed by the company secretary/director, precedent partner, sole-proprietor, manager or a person authorised by the employer. For a computer-printed Form
IR8A, signature is not compulsory. However, the name, designation, contact number of the authorised person and
the date must be stated.
4. As mentioned, the employer can give a copy of Form IR8A to their employees for their record. Your employee can use the details of remuneration from this Form IR8A to submit their own individual income tax return to IRAS by 15 April each year. It is important to inform your employees to file their employment income information and deductions to IRAS by 15 April each year.
5. The employer must furnish Form IR8A to their employees no later than 1 March every year. Under Section 94 of the Income Tax Act, employers who fail to comply with the deadline shall be liable on conviction to a fine not exceeding $5,000 and in default of payment to imprisonment for a term not exceeding 6 months.
6. Employers should ensure the accurate and complete reporting of employees’ employment income information. Under Section 95 of the Income Tax Act, any person who gives any incorrect information in relation to any matter affecting the tax liability of any other person shall be guilty of an offence, and may be liable to a penalty of up to two times the amount of tax undercharged and also to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3
years or to both.
7. Please contact us if you require help in preparing and completing Form IR8A for your employees. At PL Biz Consulting Pte Ltd, we have the tax experts with many years of experience to advise and help you to complete . Filing the correct ECI amount will ensure that you pay the correct amount of tax to IRAS.
