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Payroll Vendor Briefing on

Auto-Inclusion Scheme (AIS) for Employment Income

Aug 2017

Agenda

• AIS for Employment Income

• Important notes- Changes to list of supporting payroll software vendors

- Recommended controls for payroll software

• Changes to file specifications for YA 2018

• Introduction to AIS-API Service

• Other new API services

• Q&A

1

Agenda







• Q&A

2

AIS for Employment Income

• AIS Employers e-Submit their employees’ income information to

IRAS. The information is automatically included into the employees’

income tax assessment.

• Less Paperwork for Employers

AIS Employers do not need to distribute hardcopies of the Form IR8A, Form IR8S,

Appendices 8A and 8B to their employees.

• Simpler Tax Filing Process for Employees

Employees do not need to enter employment income information when

filing their tax returns. They just need to verify the auto-included

information via myTax Portal.

3

Getting more employers on board AIS

• Every year, about 15% of employers newly on board AIS are using

payroll software. Payroll software vendors are encouraged to

engage clients who have yet to join AIS to come on board soon.

• You can check if your client is under the AIS using

AIS Organisation Search Service at IRAS website (www.iras.gov.sg >

Businesses > Employers > Auto-Inclusion Scheme (AIS) for

Employment Income > employers participating in the AIS), or

AIS Organisation Search API (under “Other new API services” section)

• Employers will register for AIS at myTax Portal

www.iras.gov.sg > Businesses > Employers > Auto-Inclusion

Scheme (AIS) for Employment Income > Joining the AIS for

Employment Income > Register for AIS Online

4

http://www.iras.gov.sg/

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/AIS-Employers/


https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Joining-the-Auto-Inclusion-Scheme--AIS-/#title2

Once on board AIS

• Employers need to authorise a staff/ third party to submit the

employment income information. User guide on IRAS’ website:

www.iras.gov.sg > Businesses > Employers > Auto-Inclusion Scheme (AIS)

for Employment Income > Authorising staff/third party to submit

• Preparation and submission can be done via

Payroll Software with API (today’s focus!) or IRAS’ Applications

• Deadline for submission is 1 Mar of each year

Employers are encouraged to submit by 10 Feb to avoid peak rush

• Should your clients have general tax-related enquires,

you may direct them to [email protected].

5


https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/Businesses/Authorisation Guide.pdf

mailto:[email protected]

Agenda







• Q&A

6

Important notes for payroll software vendors

• Always refer to IRAS website for latest information:

www.iras.gov.sg > Businesses > Employers > Auto-Inclusion Scheme

(AIS) for Employment Income > Payroll software vendor , Technical File

Format/Specifications

* The listing of payroll vendors is not to be taken as any form of endorsement

or recommendation by IRAS. IRAS only validates the format of the file

generated from the payroll software (and not the payroll software itself),

to ensure that it can be accepted by IRAS' system.

7

For Employers For Payroll Software Vendors

- List of Supporting Payroll Software

Vendors* (final list is updated by end

Dec annually)

- List of Controls for Payroll Software

- How to be listed as a supporting payroll

software vendor

- Annual Declaration Form, Technical file

format specifications and summary of annual

changes to file format (updated by end Jul

annually)


https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Supporting-Payroll-Software-Vendors/

https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Technical-File-Format/Specifications/

Changes from YA 2018

• List of Supporting Payroll Software Vendors


(AIS) for Employment Income > Payroll software vendor

New from YA 2018 !

1. List of Supporting Payroll Software Vendors will be updated weekly

during the File Validation Test period (Sep-Nov)

2. More information about each payroll software vendor will be added

- Form types supported (IR8A, Appendix 8A/B, IR8S)

- Mode of submission supported (file generation and/or API)

- Compliance to recommended controls (w.e.f. YA 2019)

Current list

for YA2017:

8


https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Supporting-Payroll-Software-Vendors/

Changes from YA 2019

• List of Controls for Payroll Software


(AIS) for Employment Income > Payroll software vendor > List of Controls

for Payroll Software

We encourage employers to evaluate the controls that payroll software have

before they make their purchase.

New from YA 2019 !

1. List of Controls for Payroll Software will be modified to become a

checklist for declaration purposes.

2. Vendors will have to provide a written declaration to IRAS informing if

their software is compliant with the controls. The degree of

compliance will be indicated in the List of Supporting Payroll

Software Vendors.

9


https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/Businesses/Types of controls for payroll software.pdf

List of Controls for Payroll Software

10

Types of

ControlsRequirements* Rationale

Data preparation

controls – General

requirements

1) The payroll software should not automatically

mark/default any of the remuneration components

as a non-taxable item.

Hardcoding any item as

non-taxable is wrong.

Data preparation

controls – Tax

reporting of CPF

contributions

4) The relevant values in the Form IR8S and

Appendices 8A / 8B are automatically populated to

the corresponding fields in the Form IR8A (e.g.

“Total Value of benefits-in-kind” in Appendix 8A will

be populated to item d9 – “Value of benefits-in-kind”

of Form IR8A).

To reduce any human error

when transposing the

figures from one form to

another.

6) The payroll software can compute compulsory

CPF contributions based on prevailing CPF rates,

age group and residence status.

To ensure that accurate

information are transmitted

to IRAS.

• Recommended Controls for Payroll Software

* Requirements are numbered according to the List of Controls (refer to slide 9).

Recommended Controls for Payroll Software

11

Type of


Access rights

controls

8) Provide adequate access rights

controls (e.g. access is given on a need

to basis, there should be login IDs,

password and audit trail to prevent and

trace unauthorised access or update).

There must always be some form of

access rights controls to prevent any

unauthorised editing or tampering of

records. These controls should always

result in some form of audit trail to trace

who had made the amendments.

Proper

documentation

of the software

products for

users

10) Provide users with the procedures on

the backing up of payroll data.

To allow restoration of data in the event of

a system crash or data corruption.



12

Type of


Generation of

relevant tax

forms and

reports

11) The payroll software is able to allow user to

generate the following reports to ensure the accuracy

of the information that is transmitted to IRAS:

a) Reconciliation report

To compare the total remuneration paid against the

total remuneration reported for tax.

b) Verification report

To ensure that all remuneration items have been

either classified as taxable or non-taxable and to also

highlight if there are any cases of excess CPF

contributions.

To ensure correctness and

accuracy of the information

transmitted to IRAS.



13

Type of


Generation

of relevant

tax forms

and reports

12) The payroll software is able to generate Form IR8A for the

following employees:

a) Full-time resident employee

b) Part-time resident employee

c) Non-resident employee

d) Company director (including a non-resident director)

e) Board Members receiving Board/Committee Member Fees

f) Pensioner

g) Employee who has left the organisation but was in receipt

of employment income in the year income was derived

It is a requirement that

employers must prepare

Form IR8A and Appendix

8A (if applicable) for their

employees (as listed).


Agenda







• Q&A

14

File Format / Specifications

• File format / specifications for YA 2018 is available at

www.iras.gov.sg > Businesses > Employers > Auto-Inclusion

Scheme (AIS) for Employment Income > Validation and Submission

Application > Technical file format/specifications

• Supporting documents

1. Country, Nationality and Bank code

2. Things to note for both TXT and XML

3. FAQs

15


https://www.iras.gov.sg/IRASHome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Technical-File-Format/Specifications/

Common Errors

16

Common Errors What should be done?

Stock Option Gains

- Section 10(1)(b) and Section 10(1)(g)

amount wrongly populated in Form IR8A

Section 10(1)(b) refers to the Gross amount of gains for:

- ESOW; or

- ESOP granted after year 2003.

Must be declared at “item 43 – S10(1)(b)” in the IR8A.

Section 10(1)(g) refers to the Gross amount of gains for:

- ESOP granted before year 2003.

Must be declared at “item 19a – S10(1)(g)” in the IR8A.

Do not combine S10(1)(g) and S10(1)(b) in the IR8A.

• It is important that payroll software generates complete and accurate

information for AIS submission to prevent unnecessary rework by

vendors and employers.

Common Errors

17

Common Errors What should be done?

Wrong indicators/ values in Forms, e.g.

- IR8S indicator in Form IR8A wrongly

set to “Y” even though there is no

excess CPF contribution

- TOT indicator wrongly default to “F”

Do not default any indicators or values, nor make program

changes to default any items in the forms for the purpose of

File Validation Test (FVT) and API Sandbox Testing.

Leave all indicators blank if it is not applicable to the

employee record.

Employee records were omitted from

submission

Do not omit any employee records that have left the company

within the year (resignees).

If the payroll software does not contain resignees records, but

you have resignees records to be submitted, you may submit

the resignees records using IRAS’ AIS Submissions.

18

Changes to File Specifications for YA 2018

Field Name File Format Change(s)

Section 45 indicator IR8A (Detail) Cannot be blank if employee is a non-resident director

Exempt Income/ Income

subject to Tax

Remission

IR8A (Detail)

TXT format only

Change field name to:

Exempt Income/ Income subject to Tax Remission/ Income from

Overseas Employment/ Income from Overseas Pension Fund with

Tax Concession

Remission / Exempt /

Non-Taxable Indicator

IR8A (Detail)

TXT format only


Remission / Overseas Posting / Exempt Indicator

Benefits-in-kind

indicator

IR8A (Detail)

TXT format only


Appendix 8A indicator

Nationality Code IR8A, Appendix 8B

(Detail)

Nationality code cannot be ‘300’

• Update payroll software according to changes to YA 2018 file format

changes in preparation for File Validation Test (Sep-Nov)

19

Changes to File Specifications for YA 2018

Field Name File Format Change(s)

Servant / Gardener Appendix 8A(Detail)

TXT format only


Servant / Gardener / Upkeep of Compound

No. of Passages (Self/ Spouse/ Children) Appendix 8A (Detail) Not applicable from YA2018 onwards

Cost of home leave passages and

incidental benefits

Appendix 8A(Detail)

TXT format only


Cost of home leave passages and incidental benefits

provided to employee and his family

Life insurance premiums paid by the

employer

Appendix 8A(Detail)

TXT format only


Insurance premiums paid by the employer

Other non-monetary benefits which do

not fall within the above items

Appendix 8A (Detail) Not applicable from YA2018 onwards

Non-monetary awards for long service

(for awards exceeding $200 in value)

Appendix 8A (Detail)

TXT format only


Non-monetary awards/benefits e.g. non-cash gift or

long service award exceeding $200

Income Tax forms and explanatory notes is available at:

www.iras.gov.sg > Quick Links > Forms > Businesses > Income Tax forms for

Employers


https://www.iras.gov.sg/irashome/Quick-Links/Forms/Businesses/Income-Tax-forms-for-Employers/

Agenda







• Q&A

20

Submission Process with Validation and Submission

Application

• Employers need to download IRAS’ Validation and Submission

Application to validate files generated from their payroll software

21

1

2 3

5

Employers make

use of payroll

software to

generate AIS files

Export AIS

filesLoad AIS files to Validation and

Submission Application

Submit to IRAS4Log in myTax Portal

using SingPass

Employers

Submission Process with API

22

1

Employer login to payroll

software and submit AIS files

through API

2

IRAS SYSTEM

IRAS System

Validation

With each successful

submission, an email

notification will be sent to

employer (owner and

employee) for successful

submission.

5

3Response message is

sent back to payroll

software to notify

success or error status,

including details.

4

Provide response / error

message prompt to

Employer.

• Payroll software with API can integrate directly with IRAS’ server for

AIS submissions

IRAS API

Gateway

IRAS network

JSON msg containing

XML/Text data

Client ID

Secret

Submission Process with API

23

• Feedback from employers for YA 2017:

“The process was very easy and straight forward. Previous years I

need to manually input the figures. With this service, all I need is a click

and all information is submitted.”

“A very pleasant surprise as it was fast & easy. Time taken was half of

previous years submission.”

“No need to export the file and login IRAS again to upload the file for

submission.”

• Each submission allows up to 800 records in total (regardless of form type)

and cannot be more than 8 MB in total data size.

Examples of Accepted Submissions (total size < 8 MB)

• 800 IR8A records

• 500 IR8A records + 100 IR8S records + 50 Appendix 8A records + 50 Appendix 8B records

• 100 IR8A records + 30 IR8S records + 10 Appendix 8A records

Examples of Rejected Submissions

• 700 IR8A records and total size > 8 MB

• 801 IR8A records

• 201 IR8A records + 200 IR8S records + 200 Appendix 8A records +

200 Appendix 8B records

24

IR8A IR8S Appendix A8A Appendix A8B

Supported File Types and Submissions

25

Supported File Types and Submissions

• For employers who need to submit more than 800 records, your

application should ‘chunk’ it into 2 or more submissions.

Example of IR8A submission for 1,000 employees

1st submission – IR8A for 800 employees (size < 8 MB)

2nd submission – IR8A for 200 employees (size < 8 MB)

• In the event that a ‘chunked’ submission fails, error details will be

returned in the response message, and the failed submission will not

be accepted by IRAS.

Example of IR8A submission for 1,000 employees

1st submission – IR8A for 400 employees (size < 8 MB) – Passed

2nd submission – IR8A for 600 employees (size > 8 MB) – Failed, to resubmit

Application user will have to resubmit the 2nd submission data chunk only.

AIS API Interface Specifications - Input

26

Fields Details Example

userID String containing the ID Number of the person

doing the submission

"userID": "S1111111C"

userIDType String containing the type of User ID Number.

Acceptable type are “1” is for NRIC, “2” is for

FIN , “4” is for WP , “A” is for ASGD and “11” is

for MIC

"userIDType": “1”

clientID String containing the ID of the application

invoking IRAS’ API. This value will be provided

to the application vendor by IRAS. This value

will be the same as the Client-Id in the HTTP

header parameter.

"clientID": “a1234b5c-1234-

abcd-efgh-a1234b5cdef”


27


ir8aInput String containing the content of the

IR8A

"ir8aInput":

"xmlns=\"http://tempuri.org/ESubmiss

ionSDSC.xsd\">\n<FileHeaderST>\n

<RecordType>0</RecordType>\n etc

ir8sInput String containing the content of the

IR8S

a8aInput String containing the content of the

Appendix 8A

a8bInput String containing the content of the

Appendix 8B

inputType String to indicate if the content is a XML

or TEXT format. Expected value

includes “XML” and “TEXT”

"inputType ": "XML"


28


validateOnly If validateOnly = true - validation

without submission.

If validateOnly = false - validation with

submission.

"validateOnly": “false”

bypass If bypass = true - bypass warning and

proceed with submission.

If bypass = false - respond as error with

no submission.

*it’s recommended to set as false to

prompt the user to correct the warning

"bypass ": “false"

Sandbox https://apisandbox.iras.gov.sg/iras/sb/AISubmission/submit

Production https://apiservices.iras.gov.sg/iras/prod/AISubmission/submit

Sample JSON request object (XML content in field INPUT truncated for brevity).{

"validateOnly": “false”, "userID": "S1111111C","userIDType": “1”,"ir8aInput": "<?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?><IR8A xmlns=\

"http://www.iras.gov.sg/IR8ADef\">\n<IR8AHeader>\n<ESubmissionSDSC xmlns=\"http://tempuri.org/ESubmissionSDSC.xsd\">\n<FileHeaderST>\n<RecordType>0</RecordType>\n etc

"ir8sInput": "","a8aInput": "","a8bInput": "","inputType ": "XML","bypass ": “false","clientID": “a1234b5c-1234-abcd-efgh-a1234b5cdef”

}


29

• Client application will be required to POST a JSON request object to the

following URLs:

AIS API Interface Specifications Output

30


statusCode Status of the service output returned to the

client. The default value is 200 (OK)

"statusCode": “200”,

msgError General error message "msgError": “NoOfRecords

Exceed 800”

ir8a An array containing the output, warning, error

related to the ir8a form submitted

"ir8a": {

"output":"",

"warnings":[ ],

"errors":[ ]},

ir8s An array containing the output, warning, error

related to the ir8s form submitted

a8a An array containing the output, warning, error

related to the a8a form submitted

a8b An array containing the output, warning, error

related to the a8b form submitted


Scenarios

1. Successful submission

2. Successful with warning

3. Unsuccessful with errors

31


Successful submission (sample)

32

{"statuscode": “200”,"output": "ES15080216IR8A1234567890|SAMPLE PTE. LTD.|201234567A|2016|O|0102161600|S2222222F|30","errors": [],"warnings": []

}

33

If bypass= true, warning message will be shown and submission is allowed.

{"statuscode": “200”,"output": " ES15080216IR8A1234567890|SAMPLE PTE.

LTD.|201234567A|2016|O|0102161600|S2222222F|30","errors": [],

"ir8a": {

"output":" ",

"warnings":[{

"recordType": 1,

"recordField": " IDNo",

"recordIdentifier": "S1234567A",

"error": "ir8s is required"

}],

"errors":[ ]

}

}

If bypass=false, warning message will be shown and submission is not allowed. {"statusCode": “400”," msgError ": “”,"ir8a": {

"output":" ","warnings":[{

"recordType": 1,"recordField": " IDNo","recordIdentifier": "S1234567A","error": "ir8s is required"

}],"errors":[ ]}}


Successful submission with warnings (sample)


34

{"statuscode": “400”,"output": "","ir8a": {

"output":"","warnings":[{}],"errors":[{

"recordType": “2”,"recordField": " BasisYear ","recordIdentifier": "200312345A","error": " Invalid"

}]}

}

Unsuccessful submission with errors (sample)

Steps towards AIS API integration

35

IRAS API Registration

Changing your payroll

software

Sandbox Testing

Your first API AIS

submission

Step 1

Developer Registration and Plan subscription

36

• Create developer Account (Sandbox & Production)

• Register new Application

• Subscribe to an API


37

Step 1Developer creates an account at IRAS Developer Portal

Step 3Developer Logs into IRAS Developer Portal

Step 2Send Mail Activation to Developer

Step 4Developer selects the service to subscribe:1. If the Service does not require

approval, it is immediately activated.

2. If the Service requires approval, email notification will be received upon approval or rejection.

Please safekeep the client ID and secret key securely

• Create an Account (Registration)


38

• Create an Account (Registration)In order for IRAS to identify your API subscriptions, please follow the

instructions below when creating an account at IRAS Developer Portal:

First name *To enter “Organisation Name” i.e. Payroll Vendor Name

Last name *To enter “Organisation ID”


39

• Register new ApplicationTo get the Client ID and Secret, developer requires to register the application

that will be calling the API


40

• Register new Application

Client Secret

Client ID


41

• Subscribe to an API

Click here to Subscribe- Sandbox (no approval)- Prod (require approval)


42


Sandbox Testing

Your first API AIS

submission

Step 2


software


43



software

Sandbox Testing

Your first API AIS

submission

Step 3

API Sandbox Testing

44

• Sandbox testing is mandatory before the subscription for Production can be

granted approval. Scenario provided below

Scenarios

API Sandbox Testing

45

• What do I have to do?

1. Perform testing based on the test scenarios published at the Sandbox portal.

For every successful test submission, a submission reference number will be

provided within the API response.

2. Submit the organisation name, scenario no and its reference numbers that you

have tested via email to [email protected]. IRAS will get back to you on the

outcome of your Sandbox testing within 10 working days via email.

{ "statuscode": “200”,"output": "ES12345678IR8A1234567890|SAMPLE PTE.

LTD.|201234567A|2016|O|0102161600|S2222222F|30","errors": [],"warnings": []}



46



software

Sandbox Testing

Your first API AIS

submission

Step 4

Outcome of Sandbox Testing

47

• For vendors who have passed the sandbox testing, please

proceed to:

1. Create an account in IRAS Developer Portal Production (refer to

“Registration” slide), and

2. Subscribe to the API plan “AISubmission”. This service requires

approval.

Subscription approval turnaround time is 10 days.

• For vendors who did not pass the sandbox testing e.g. amount in

test files do not tally with the given scenario, IRAS will contact you

via email accordingly.

Making your first AIS API submission

• After IRAS approves your subscription to the API plan

in Production, your clients may proceed to make their

first AIS API submission from your application.

• If your subscription is rejected, IRAS will contact you

with more information via email.

48

API-related documents

49

SN Document Refer to

1 AIS API Interface

Specifications*,

API Portal User Guide, and

API FAQ

Sandbox portal: https://apisandbox.iras.gov.sg/iras/devportal/sb/downloads

Production portal: https://apiservices.iras.gov.sg/iras/devportal/downloads

*AIS API Interface Specifications has been relocated to Production portal > API

Products > AISubmission service page.

2 Text File Format (.txt) and

Extensible Markup

Language Format (.xml)

https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-

Scheme--AIS-/Technical-File-Format/Specifications/

The file format is the same as the Validation and Submission Application (OVP),

except for Telephone Number and Email Address of Authorised Person in the

Header record, which is mandatory for API submission.

3 Supporting Specifications /

Important Notes

https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-

Scheme--AIS-/Technical-File-Format/Specifications/

Additional validation rules documented in the Supporting Specifications/

Important Notes also applies for API submission.

https://apisandbox.iras.gov.sg/iras/devportal/sb/downloads

https://apiservices.iras.gov.sg/iras/devportal/downloads

https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Technical-File-Format/Specifications/

https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-Scheme--AIS-/Technical-File-Format/Specifications/

Timeline

Aug – Sep 2017

• Attend payroll software vendor briefing

• Submit declaration form

• Make changes to payroll software

Sep – Nov 2017

• File Validation Test / API Sandbox Subscription and Testing

• Subscription/ Approval to API in Production Environment

• YA 2018 Supporting vendors listing (weekly update)

Mid Dec 2017 • YA 2018 API Production deployment

Jan – 1 Mar 2018 • YA 2018 Live Submission

50

Agenda







• Q&A

51

API – AIS Organisation Search/

Commission Organisation Search

• These API services allow vendors to trigger a request to find out

whether an employer/ commission-paying organisation is currently

in the Auto-Inclusion Scheme (AIS) for Employment Income/

Commission.

• Benefits:

- Will allow clients to make better decisions whether they can perform e-

Submissions to IRAS.

- Request and response is immediate and up-to-date.

• More information can be found in the API Marketplace:

https://apiservices.iras.gov.sg/iras/devportal/node/361

52

https://apiservices.iras.gov.sg/iras/devportal/node/361

• This API service allows commission-paying organisations to

transmit commission income information of commission earners

(not employees) directly to IRAS

- Similar to AIS-API Service

- Requires vendor to complete Sandbox testing before allowing

subscription to production

• Benefits:

- Direct transmission of commission earners’ income information without

the need for file generation

- Clients need not log on to IRAS’ myTax Portal to perform submission

• Available from YA 2018 onwards. Interested vendors can

email to [email protected].

53

Commission API Submissions

The information presented in the slides aims to provide a better general

understanding of taxpayers’ tax obligations and is not intended to comprehensively

address all possible tax issues that may arise. This information is correct as at

10082017. While every effort has been made to ensure that this information is

consistent with existing law and practice, should there be any changes, IRAS

reserves the right to vary its position accordingly.

© 2017 Inland Revenue Authority of Singapore. All rights reserved.54

Q&A

Thank You

For further enquiries, please email to [email protected].


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