ECI is an estimate of the
company's taxable income (after deducting tax-allowable expenses) for a Year of
Assessment (YA).
For details of taxable income and tax-allowable expenses,
refer to Taxable and Non-Taxable Income and Business Expenses.
Your company does not need to file the ECI for that particular YA if it meets the following criteria:
- Annual revenue is not more than $5 million for the financial year; and
- ECI* is NIL for the YA.
Companies must meet both criteria 1 and 2 to qualify for the waiver to file ECI.
Examples of how the ECI waiver criteria is applied
Financial Year End | Basis Period for YA 2021 | Due Date for Filing ECI | Revenue | ECI | Qualifies for Waiver to File ECI? |
---|
Jun 2020 | Jul 2019 to Jun 2020 | 30 Sep 2020 | $5 million | $100,000 | No |
$10 million | Nil | No |
$5 million | Nil | Yes |
Companies are required to self-assess if they meet the criteria for the waiver to file ECI. New companies that have yet to file their first Corporate Income Tax Return (Form C-S/ C) can use the
New Company Start-Up Kit to better understand their corporate tax obligations, including if they meet the criteria for the waiver to file ECI.
Companies that meet the criteria do not need to file their ECI for that particular YA, even though the company’s
ECI Filing Status (PDF, 285KB) for the YA at myTax Portal shows “Ready to File”. There is no need to seek confirmation from or inform IRAS.
If they do not meet either one of the abovementioned
criteria (i.e. either 1 or 2), they will need to file their ECI for that particular YA.
For details, please refer to the FAQs section below on the Waiver to File ECI.