Definition of ECI
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.
Declaration of revenue in ECI Form
Besides stating the ECI, you have to declare the company's revenue in the ECI Form. This declaration is compulsory with effect from Jan 2017.
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 (e.g. interest and dividend income).
Where the audited financial statements 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 financial statements 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.
When to File ECI
All companies including new companies are required to file ECI within three months from the end of their financial year except for companies that qualify for the administrative concession and those that are specifically not required to file.
For details, refer to Companies That Do Not Need to File ECI.
Examples of ECI Filing Deadlines Based on Different Financial Year Ends
|Financial Year End of Company||Financial Year/ Basis Period||Year of Assessment (YA)||Filing Deadline for ECI|
31 Mar of each year
1 Apr 2016 - 31 Mar 2017
30 Jun 2017
31 Jul of each year
1 Aug 2016 - 31 Jul 2017
31 Oct 2017
|31 Dec of each year||1 Jan 2017 - 31 Dec 2017||2018||31 Mar 2018|
Companies will receive a notification from IRAS to file the ECI in the last month of its financial year. Companies should still proceed to file the ECI within three months from its financial year end even if they do not receive the ECI notification.
For information on filing of ECI by new companies, please refer to the Basic Guide for New Companies.
Advantages of Filing On Time
1. Payment of Taxes by Instalment
Companies that submit their ECI within the qualifying period may opt to pay corporate taxes by instalments. To encourage early filing, the earlier a company files, the greater the number of installments they will be given.
2. Greater Number of Instalments for e-Filing
Companies that file on time and e-File, instead of paper file, will also enjoy a greater number of instalments.
Please refer to Filing ECI and Paying Estimated Taxes for more information.
Difference in amount declared as ECI and Chargeable Income reported in Form C-S/ C
If the chargeable income reported in Form C-S/ C is less than the chargeable income estimated in ECI, the excess tax paid earlier will be refunded automatically.
If the chargeable income reported in Form C-S/ C is more than the chargeable income estimated in ECI, the additional tax must be paid within one month from the date of the Notice of Assessment. Please note that if there is a significant difference between the ECI reported earlier and the chargeable income reported in the Form C-S/ C subsequently, IRAS may require the company to provide an explanation.