Overview of Estimated Chargeable Income (ECI)
ECI is a company’s estimate income that is chargeable for a year of assessment (YA). In other words, it is the total amount of revenue before deducting start up tax exemption and other items.
The declaration of filling ECI to IRAS is compulsory from Jan 2017.
The revenue is mentioned in ECI form that includes company’s main income sources.
When the companies need to file ECI
Now, all companies including new companies are required to file ECI within three months from the end of their financial year. In fact, the compulsory for filling ECI has changes from the Year Assessments (YAs) 2018 to 2020 as follows:
=> From the YA 2020 all Singapore companies must fill ECI to IRAS
IRAS will send an ECI filing notification in the last month of company’s financial year. Companies should prepare and submit their ECI within three months from the end of financial year even they don’t receive the ECI notification.
However, there are some cases that don’t need to submit ECI, refer to ECI exempt companies
How to submit the ECI
Paper fil and e-File via mytax.iras.gov.sg are two methods for filling ECI. From the year of 2018, e-filling is more encouraged than paper filling.
- E-File via mytax.iras.gov.sg
Before e-Filing, please ensure:
- You have been authorised by the company as an “Approver” for Corporate Tax (Filing and Applications) in CorpPass; and
- You have the company’s tax reference number, your CorpPass ID and CorpPass password.
- Paper file
The completed ECI Form can be submitted to IRAS by post:
Inland Revenue Authority of Singapore
55 Newton Road
Difference in amount declared as ECI and Chargeable Income reported in Form C-S/ C
If the chargeable income reported in Form C-S/ C is less than the chargeable income estimated in ECI, the excess tax paid earlier will be refunded automatically.
If the chargeable income reported in Form C-S/ C is more than the chargeable income estimated in ECI, the additional tax must be paid within one month from the date of the Notice of Assessment. Please note that if there is a significant difference between the ECI reported earlier and the chargeable income reported in the Form C-S/ C subsequently, IRAS may require the company to provide an explanation.
To get consultancy about tax and accounting for Singapore companies, contact ACE Global Accountant for a quote.