Singapore Estimated Chargeable Income (ECI)
Singapore Estimated Chargeable Income (ECI) statement of a company should include its main source of revenue. Every company needs to file its ECI statement within three months from the end of its financial year. Data from the audited accounts or management accounts is used to prepare ECI Statements.
ECI stands for Estimated Chargeable Income, is an appraisement of a Singapore company’s taxable income for a given Year of Assessment (YA). Regardless of size and type, all companies in Singapore are required to file an ECI statement to the IRAS (Inland Revenue Authority of Singapore) for the preceding economic year within three months from the end of its financial year. The companies with no income during the Year of Assessment (YA) must file a ‘Zero’ ECI unless the company qualifies for the prerequisite conditions of administrative concession of IRAS.
An ECI statement should include the company’s main source of revenue excluding any gains on disposal of fixed assets. For instance, if you run a Singapore investment company, the primary source of income of the company is investment income. Your company is required to disclose the revenue data in Income tax return form (Form C/Form C-S). Revenue information stated in ECI filing form is a key financial data used for strategic decision-making, assessment of performances and business development of a company.
In the case that audited account in unavailable at the time of ECI submission, you can refer to the management accounts of the company for declaring the revenue amount. When the audited account come into effect and revenue amount based on audited account can be different from declared amount in ECI form, there will be no change in your ECI and you are not required to submit revised figures.
Who needs to file the ECI?
All companies in Singapore must submit their ECI to IRAS within 90 days from the end of their financial year. With effect from YA 2013, for companies with financial year ending Oct 2012 or after, will not be required to file ECI for a particular financial year if they meet following conditions under administrative concessions scheme:
• Company with less than S$1 million annual revenue for the financial year and
• ECI* is NIL
*ECI refers the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.
Effects of Non-Compliance
For the companies failed to submit ECI within the stipulated three months from the end of their financial Year, IRAS issue a Notice of Assessment (NOA) based on its own estimation of the company’s revenue. In case of disagree with the estimated assessments of IRAS, company owners must lodge objection either electronically via myTax Portal or can write to their corporate tax division within one month from the date of NOA. Otherwise, the NOA will be treated as the fair and true assessment despite differences on the revenues declared on Form C/Form C-S and the account submitted afterwards.
Benefits of Early ECI filing
IRAS offers two options to the companies for filing ECI. You may file ECI either by submitting online via myTax Portal or filling paper based ECI form. With an aim to encourage early filing, the authority of IRAS has awarded more numbers of installments to early e-filers and paper-filers. For instances:
|ECI filed within|
e-filers (no. of Installments)
Paper-filers (no. of Installments)
|1 month from financial year-end|
|2 months from financial year-end|
|3 months from financial year-end|
For e-Filers, e-File by the 26th of each qualifying month to enjoy the maximum number of instalments allowable for that month. For paper-filers, your company’s ECI Form should reach IRAS by the 24th of each qualifying month to enjoy the maximum number of instalments allowable for that month.
The above-illustrated table clearly signifies that the earlier the ECI filed, the higher the number of payment installments. No installment option will be given to the companies that file their ECI after 3 months from financial year-end.
Why to outsource Your Estimated Chargeable Income (ECI) Filing needs to SBS Consulting?
SBS Consulting provides comprehensive solutions to Singapore ECI filing needs starting from
a. determination of company’s financial years,
b. preparation of ECI statement,
c. obtaining online access code (for e-filers) to final submission of ECI report to IRAS.
Our team of dynamic professionals is ever ready to help and assists our valuable clients all along the way of ECI filing. We at SBS Consulting adhere to statutory obligations laid down by IRAS and strive to deliver quality and error-free services to you.