ECI exempt companies

As announced, all companies in Singapore including new companies must have to file to IRAS two reports annually including Form C/ C-S and Estimated Chargeable Income (ECI). With ECI, companies need to file within 3 months after the end of its financial year end. However, companies may not need to file Estimated Chargeable Income (ECI) even if they have received the ECI notification from IRAS.

Waiver to File ECI

To reduce the compliance cost of businesses, IRAS has revised the criteria for ECI waiver as follows:

Company’s Financial Year ends

  • In or before Jun 2017
  1. Annual revenue is not more than $1 million for the financial year; and
  2. ECI* is NIL for the YA
  • In or after Jul 2017
  1. Annual revenue is not more than $5 million for the financial year; and
  2. ECI* is NIL for the YA

Note: * The ECI should be the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.

Companies are required to self-assess if they meet the criteria for the waiver to file ECI. New companies that have yet to file their first Corporate Tax Return (Form C-S/ C) can use The New Company Start-Up Kit to better understand their corporate tax obligations, including if they meet the criteria for the waiver to file ECI.

Companies that meet the criteria do not need to file their ECI for that particular YA, even though the company’s ECI filing status for the YA at myTax Portal shows “Ready to File”. There is no need to seek confirmation from or inform IRAS.

If they do not meet any of the criteria 1 and 2, they will need to file their ECI for that particular YA.

Other Entities Specifically Not Required to File ECI

The following entities do not need to file ECI

  1. Foreign ship owners or charterers for whom the Shipping Return(75KB) 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 waiver to furnish ECI by IRAS, e.g. via an advance ruling issued.

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Source: Inland Revenue Authority of Singapore

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