What is the ECI?
ECI, also known as Estimated Chargeable Income, is an estimate of a company’s chargeable income for a Year of Assessment (YA) within 3 months from the financial year-end. In other words, it is the gross amount of income/revenue before SUTE (startup tax exemption) deductions and other items such as gain on disposal of fixed assets.
Why and when should companies file the ECI?
ECI data facilitates policy-making on a macro level, as well as the assessment of industrial performance. Furthermore, the filing of the ECI is one of the annual corporate compliance requirements in Singapore. It must be submitted to IRAS, the national tax authority within 3 months after the end of the financial year.
Who needs to file the ECI?
Your company has to furnish its Estimated Chargeable Income (ECI) within 3 months after the end of its financial year end.
Companies that are exempted from filing their ECI would need to fulfill the following conditions:
|Company’s Financial Year ends||Criteria for ECI waiver|
|In or before Jun 2019||
|In or after Jul 2019||
What to file?
If audited accounts are not available, a company may refer to its management accounts to declare the revenue amount. If the revenue amount based on audited accounts turn out be different from that declared in the ECI Form, and there is no change in your ECI, you are not required to revise the revenue figure.
|Financial year-end||Due date for filing ECI||Period covered in the accounts||Year of Assessment (YA)||Due date for filing ECI for that particular YA|
|31 December||31 March of the following year||1 January 2018 – 31 December 2018||2019||31 March 2019|
|31 March||30 June of the following year||1 April 2017 – 31 March 2018||2019||30 June 2018|
Advantage of filing ECI early
Companies that e-file their ECI statements enjoy more installment plans to pay their taxes compared to companies that file by paper. In addition, the earlier the ECI statement is submitted, the more installments are bestowed to your firm. For example, a company whose financial year ends in December enjoys the following number of payment installments.
|e-File by||Installments||Paper file by||Installments|
|26 January||10||24 January||$1.00|
|26 February||8||24 February||$2.00|
|26 March||6||24 March||$3.00|
|After 26 March||None||After 24 March||None|
Failure to comply with filing of ECI
If a company has failed to comply with the ECI requirement, IRAS shall issue a Notice of Assessment (NOA) based on its estimation of its income. The company then has one month from the date of IRAS’ NOA to submit its written objection if it does not agree with IRAS’ estimated assessment. Otherwise, the NOA is recognized as final.
Need assistance with your ECI submission?
Speak to our accounts specialists – we are ready to help you obtain an e-access code to file your ECI online and prepare your company’s ECI.