This guide explains about Singapore ECI (Estimated Chargeable Income) filing. It covers what ECI is, who needs to file, when to file, and the benefits of compliance. The guide also describes what happens if you do not comply with ECI filing requirements, and why it can be helpful to use a corporate service provider to handle the process. Whether you're a small business owner or just want to learn more about ECI filing in Singapore, this guide has all the information you need.
What is Singapore ECI filing?
Estimated Chargeable Income (ECI) is a Singapore company's estimated taxable profit (net of taxable expenses) for the valuation year. Each company is required to carry out Singapore ECI filing for the assessment year to comply with Singapore’s Inland Revenue Authority of Singapore (IRAS).
Who needs to do Singapore ECI filing and why is it compulsory for Singapore companies?
In general, all companies in Singapore are obligated to comply with Singapore ECI filing within 3 months, starting from the end of their fiscal year.
New regulations have been announced for Budget 2016, requiring all companies to submit and file ECI estimations. Please note the following timeline for compulsory filing:
2018: Businesses with revenue over $10 million are required to file for YA 2017
2019: Businesses with revenue over $1 million are required to file for YA 2018
2020: Businesses of all sizes are required to submit ECI to the IRAS
Who is exempted from Singapore ECI filing?
Singapore ECI filing is not required for businesses if their ECI is nil for the Year of Assessment (YA) and they have an annual revenue of $5 million or less for the fiscal year.
The following types of companies are also exempted from filing ECI:
The possessor or leaser of a non-domestic ship, so long as the shipping agent has already submitted the Shipping Return.
Non-local universities
Real Estate Investment Trusts (REITs) receive specific tax benefits as per the Income Tax Act - Section 43(2)
Corporations that have been granted waivers from filing ECI by IRAS, such as through advance decisions
When do I need to comply with the Singapore ECI filing?
All companies are required to conduct their Singapore ECI filing within 90 days from the end of their fiscal year. They will receive notification from IRAS (Inland Revenue Authority of Singapore) that they must submit their ECI in the final month of the fiscal year. The company must nonetheless submit within 3 months of the end of its fiscal year even if it did not get the notice and does not meet the requirements to be excused from ECI filing.
What are the benefits of Singapore ECI filing for small businesses?
Companies that comply with Singapore ECI filing within 3 months of their fiscal year can choose to pay their corporate taxes in installments. To get these benefits, the company must be registered in Singapore and on GIRO.
ECI Filed Within | Installments Provided |
1 month from FYE | 10 installments |
2 months from FYE | 8 installments |
3 months from FYE | 6 installments |
After 3 months from FYE | 0 installment |
What happens if I fail to comply with the Singapore ECI filing?
In the event that a company that must comply with Singapore ECI filing fails to do so within the three-month time period, IRAS will send a Notice of Assessment with an estimated income amount to the company. If the business disagrees with the estimation, it will only have one month from the NOA date to do so.
What happens if I fail to comply with the Singapore ECI filing?
In the event that a company that must comply with Singapore ECI filing fails to do so within the three-month time period, IRAS will send a Notice of Assessment with an estimated income amount to the company. If the business disagrees with the estimation, it will only have one month from the NOA date to do so.
What are the benefits of outsourcing the Singapore ECI filing to a corporate service provider?
By outsourcing Singapore ECI filing, you can save time and reduce worry while focusing on growing your business. A corporate service provider can also offer expertise and guidance to help you navigate the complex filing process, reducing the risk of costly mistakes.
SJH Advisory provides a wide range of high-quality taxation services in Singapore. Their experienced team will work closely with you to ensure accurate and legal Singapore ECI filing. They're committed to offering the support and guidance you need to make informed business decisions. With SJH Advisory, you can trust that your taxation needs are in good hands.
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