ECI means Estimated Chargeable Income. It is an estimate of a company's chargeable income for a Year of Assessment (YA).
Declaration of amount of revenue in ECI Form
Revenue refers to a company’s main source of income, and excludes items like gain on disposal of fixed assets. If your company is an investment holding company, your main source of income will be your investment income.
Companies have been disclosing revenue data in your Income Tax Return (Form C). From 1 Jan 2009, companies will also be required to declare the revenue amount in the ECI Form. Information on the revenue of businesses is one of the key economic data used for policy-making, as well as for regular assessment of performance and development of industries and businesses. There is also an increasing need for more frequent and timely collation of comprehensive economic data in view of the rapid economic changes in recent years. Instead of imposing additional survey reporting on businesses, it is more efficient and cost effective to collect such economic data through existing channels such as the ECI Form.
Where the audited accounts are not available, you can refer to the company’s management accounts for the purpose of declaring the revenue amount. Should the revenue amount based on audited accounts 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.
Who needs to file
A company has to furnish Estimated Chargeable Income (ECI) within three months after the end of its financial year end. You may refer to When to File for more details.
We will send a letter to your company towards the end of your financial year-end to notify you to file ECI.
Even if the company estimates its chargeable income as zero, it still has to file a "Nil" ECI. You may refer to How to File for more details
Investment Holding Company
YA 2005 to 2008
If your company is an investment holding company deriving only non-trade income (e.g. interest, dividend or rental income), you do not need to furnish ECI if your non-trade income is to be assessed on a calendar year basis, i.e. assessment is based on the income derived for the period of Jan to Dec for each year, regardless of the financial year end of the company.
However, if your non-trade income is to be assessed on an accounting year basis, your company would need to file ECI within three months after the end of its financial year-end. For details on assessment of non-trade income on accounting year basis, refer to "Simplification of Income Tax Rules and Procedures - Assessment of Non-Trade Income and Deduction of Approved Donations on an Accounting Year Basis" (132KB).
YA 2009 onwards
Starting from YA 2009, all non-trade income of a company must be assessed on an accounting year basis. This means that all investment holding companies must file ECI within three months after the end of its financial year-end. For more details, you may refer to the Supplementary Circular "Simplification Of Income Tax Rules And Procedures – Assessment Of Non-Trade Income And Deduction Of Approved Donations On An Accounting Year Basis " (125KB).