Estimated Chargeable Income (ECI) Filing with IRAS

1. Understanding ECI:

ECI Definition: The ECI is an estimate of the chargeable income (taxable income) of a company for a particular YA. It should be filed even if the company estimates its chargeable income to be nil.

2. Filing Deadline:

Timeline: Companies must file their ECI within three months after the end of their financial year. For instance, if the financial year ends on March 31, the ECI should be filed by June 30.

3. How to File ECI:

e-Filing: The Inland Revenue Authority of Singapore (IRAS) encourages companies to e-File their ECI through the myTax Portal. This process is faster and more convenient.

Manual Filing: Companies can also choose to file manually, but this process takes longer.

4. Information Required for ECI Filing:

Company’s Basic Information: This includes the company’s Unique Entity Number (UEN) and the end date of the financial year for which ECI is being filed.

Estimated Income: The company needs to estimate its chargeable income for the financial year.

5. Waiver of ECI Filing:

Nil ECI: Companies with an annual revenue of not more than S$5 million for the financial year and whose ECI is nil do not need to file ECI. This waiver is subject to conditions and companies should check the latest IRAS guidelines.

6. Payment of Taxes:

Filing ECI is separate from paying the actual taxes. Once the ECI is filed, IRAS will send a Notice of Assessment (NOA) with the amount of tax to be paid.

Installment Plans: Companies that file their ECI early and electronically may be eligible to pay their taxes in installments.