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For companies

ECI means Estimated Chargeable Income. It is an estimate of a company's chargeable income for a Year of Assessment (YA).

Who needs to file

All companies have to submit their Estimated Chargeable Income (ECI) within three months from the end of their financial year.  If your company is newly incorporated, please refer to the guide for new companies (ECI filing obligations)

IRAS will send the company a notification to file its ECI in the last month of its financial year. In the event that the company does not receive the ECI filing notification from IRAS, please proceed to file the ECI within three months from its financial year-end.

Even if a company estimates its chargeable income as zero, it still has to file a "Nil" ECI unless the company qualifies for the administrative concession.

Subsequently, if the ECI is more than the actual chargeable income reported in your Form C/ Form C-S, the excess tax paid earlier will be refunded automatically.  However, if the ECI is less than the actual chargeable income reported, the additional tax must be paid within 30 days from the date of the Notice of Assessment.  Please note that where there is a significant difference between the ECI provided and the chargeable income reported in the Form C/ Form C-S, we may require the company to provide an explanation. 

Administrative Concession - Waiver of Requirement to File ECI Revised!

For Qualifying Companies

As an administrative concession, you do not need to file ECI for the particular financial year if you fulfil the following two conditions:

  • Your annual revenue is not more than $1 million for the financial year; and 
  • Your ECI* is NIL.

* It is the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.

For more details, please refer to the FAQs (119KB)

For Other Entities

The following entities are also not required to file ECI:

  • Foreign ship owners or charterers for whom the Shipping Return has been or would be submitted by the local shipping agent;
  • Foreign universities;
  • Designated unit trusts and approved CPF unit trusts#
  • Real estate investment trusts that have been granted the tax treatment under Section 43(2) of the Income Tax Act; and
  • Any other specific case granted waiver to furnish ECI by IRAS, e.g. via an advance ruling issued.

# As approved under Section 35(14) of the Income Tax Act and for the purposes of any investment scheme under the Central Provident Fund Act respectively. For these unit trusts, the income listed under Sections 35(12) and 35(12A) of the Income Tax Act is not taxed at the trustee level. Other income not covered by these Sections is likely to be negligible and hence there is no need for these unit trusts to furnish ECI.

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.

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. 

 

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Last Updated on 19 December 2014


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