Estimated Chargeable Income (ECI) is an estimate of a company’s taxable income (after deducting tax-allowable expenses) for a Year of Assessment (YA). The Inland Revenue Authority of Singapore (IRAS) requires that the ECI be filed so that they can raise an early assessment. The data collected by IRAS will also be useful in helping the Singapore government access the health of Singapore businesses from a macro level.

Every company needs to file its ECI within 3 months after the end of its financial year. However, there are certain criteria whereby companies may be exempted from filing their ECI.

  • If the company’s financial year ends in or before June 2017, the criteria for ECI waiver are:
    1) Annual revenue of the company is not more than SGD$1 million for the financial year; and
    2) ECI is NIL for the Year of Assessment.
  • If the company’s financial year ends in or after July 2017, the criteria for ECI waiver are:
    1) Annual revenue of the company is not more than SGD$5 million for the financial year; and
    2) ECI is NIL for the Year of Assessment.

Companies have to do their own self-assessment whether they are required to file ECI or not. If you are unsure about your tax obligations, you can use The New Company Start-Up Kit by IRAS to better understand your corporate tax obligations. You can use the kit to determine whether you as a company are eligible for ECI waiver. Companies who are eligible for ECI waiver in that particular Year of Assessment do not need to file their ECI even though the company’s ECI Filing Status under myTaxPortal shows “Ready To File”. You can check your company’s ECI Filing Status here.

 

Other types of companies that are not required to file ECI

  1. Foreign ship owners or charterers for whom the Shipping Return has been or would be submitted by the local shipping agent;
  2. Foreign universities;
  3. Designated unit trusts and approved CPF unit trusts
  4. Real estate investment trusts that have been granted the tax treatment under Section 43(2) of the Income Tax Act; and
  5. Any other specific case granted a waiver to furnish ECI by IRAS, e.g. via an advance ruling issued.

 

For eligible companies that fail to file their ECI within 3 months after the end of its financial year, IRAS shall issue a Notice of Assessment (NOA) based on their estimation of that company’s income. The company has one month from the date of IRAS’ NOA to submit a written objection if it does not agree to the NOA. Failure to submit this objection will mean that the NOA is recognised as final.

 

There are two ways to submit your ECI. With the introduction of compulsory e-Filing starting from YA 2018, companies are strongly encouraged to start e-Filing early.

    1. e-File via mytax.iras.gov.sgBefore e-Filing, please ensure:
      1. You have been authorised by the company as an “Approver” for Corporate Tax (Filing and Applications) in CorpPass; and
      2. You have the company’s tax reference number, your CorpPass ID and CorpPass password.

For assistance on CorpPass setup, please refer to Step-by-Step Guides.

  1. Paper file
  2. The completed ECI Form can be submitted to IRAS by post:Inland Revenue Authority of Singapore
    55 Newton Road
    Revenue House
    Singapore 307987
  3. e-Filing of ECI is currently available for YA 2018 and YA 2019. For YA 2017 ECI, please paper file instead.

 

For accounting advice, you may contact our accounting partner Singapore Accounting Services at [email protected].

When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.

 

Yours Sincerely,
The editorial team at Singapore Secretary Services

 

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