ECI (Estimated Chargeable Income)

Estimated-Chargeable-Income

Singapore estimated chargeable income (ECI) has to filed by all companies to the IRAS. If a company files ECI early, then IRAS gives them the benefit of paying the tax in installments. Also e-filers of ECI get more benefit than paper filers. To know more, visit SingaporeAudit.com.sg.

Estimated Chargeable Income Tax, also commonly known as ECI Tax, is a type of tax that all Singapore companies need to comply with. ECI is calculated by company’s annual turnover minus expenses for the year of assessment. It is an estimation of a company’s chargeable income for a YA. All Singapore companies must file the ECI with the IRAS (The tax authority of Singapore) within 3 months after the end of your company’s financial year unless they are exempted from filing under administrative concession. Filing your ECI in a timely and efficient manner is one of the annual corporate compliance requirements in Singapore.

Who are exempted from filing ECI

With effect from YA 2013, companies whose financial year-end on or after October 2012 are given an administrative concession. Under this concession, you will need not to submit ECI if the following two conditions are fulfilled:

  • Your  Annual Revenue is not more than S$1 million and
  • Your ECI is NIL.

Consequence of non-compliances

Companies fail to submit the ECI report within the stipulated period of 3 months from the financial year-end will receive a Notice of Assessment (NOA) from IRAS. The NOA would be based on the IRAS’s estimation of your income. If you do not agree with the IRAS’s estimated assessment, you have one-month time from the date of the assessment to submit a written objection.  Otherwise, that assessment would be regarded as final.

Benefits of Early Filing:

IRAS awards benefits to the companies who submit their EC statement early. You have the option to pay your corporate taxes in installments either through online or paper form. The earlier these ECI reports were submitted the higher chances you able to enjoy the number of installments. For instances:

E-File by No. of Installments Paper file by No. of installments
26th January 10 24th January 5
26th February 8 24th February 4
26th March 6 24th March 3
After 26th March NA After 24th March NA

Singapore Audit can help Singapore companies to file ECI in conformity with the regulations of IRAS. The dedicated professionals will assist you throughout the process of ECI from start to finish and beyond.  By engaging our services, you can focus on growing productivity of your business and we will look after every aspect of your ECI needs.

We will help you in many ways as follows:

  • Estimated Chargeable Income (ECI)guide
  • Preparation of ECI report and filing with IRAS
  • Information on regulations of IRAS
  • Generate access code for filing ECI online
Please feel free to contact us on +65 6536 0036 or drop in an email at info@singaporeaudit.com.sg

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