Filing Estimated Chargeable Income (ECI) and Paying Estimated Taxes

e-File early to pay taxes in instalments. The earlier you e-File, the greater the number of instalments.

Corporate Income Tax (CIT) Rebate on ECI Filed for Year of Assessment (YA) 2019

For YA 2019, companies will be granted a CIT tax rebate of 20% of the corporate tax payable, subject to a cap of $10,000.

Companies need not factor in the CIT rebate when filing their ECI for YA 2019 as IRAS will compute and allow the rebate automatically.

For more information on the CIT rebate, please refer to Corporate Tax Rates, Corporate Income Tax Rebates and Tax Exemption Schemes.

Compulsory e-Filing for ECI

As announced in Budget 2016, in line with Government's direction for more cost effective delivery of public services and the Smart Nation vision to harness technology to enhance productivity, e-Filing of Corporate Income Tax returns (including ECI, Form C and Form C-S) will be made compulsory in a phased approach from YAs 2018 to 2020 as follows:

 YA Target Group
 2018 onwards Companies with revenue more than $10 million in YA 2017
 2019 onwards Companies with revenue more than $1 million in YA 2018
 2020 onwards All companies

The phased implementation will provide more time for smaller companies to modify their processes and ease into e-Filing.

  1. A company with financial year ending 31 Mar 2018 and has a revenue of more than $1 million in YA 2018 is required to e-File its YA 2019 ECI and Form C by 30 Jun 2018 and 15 Dec 2019 respectively.
  2. With effect from YA 2020, all companies are required to e-File their ECI and Form C. For example, a company with financial year ending 31 Mar 2019 is required to e-File its YA 2020 ECI by 30 Jun 2019 (i.e. 3 months from its financial year ending 31 Mar 2019) and Form C by 15 Dec 2020

 

e-File your ECI 

From YA 2020 onwards, all companies are required to e-File their ECI.

e-File via mytax.iras.gov.sg

Before e-Filing, please ensure:

  1. You have been authorised by the company as an "Approver" for Corporate Tax (Filing and Applications) in CorpPass; and
  2. You have the company's tax reference number, your CorpPass ID and CorpPass password.

For assistance on CorpPass setup, please refer to Step-by-Step Guides.

     

      Advantages of e-Filing

      Companies that e-File their ECI enjoy:

      1. Instant acknowledgement upon successful e-Filing; and
      2. A greater number of instalments to pay your company's estimated tax.

      Only companies that are on GIRO qualify for instalment payment. Companies that do not have an existing GIRO arrangement for Corporate Tax are encouraged to apply for GIRO at least 3 weeks before e-Filing their ECI.

      If the GIRO arrangement is not approved before the payment due date, the company will not be eligible for instalment payment and will need to pay the full amount of estimated tax by the payment due date. You can check the status of your company's GIRO application through the Corporate Tax integrated phone service.

       No. of Instalments Given (Notes 1 to 3)
      Tax payable on first ECI filed withine-Filers
      1 month from financial year end10
      2 months from financial year end8
      3 months from financial year end6
      After 3 months from financial year endNo instalments allowed

      Notes
      1. The instalment plan is subject to a minimum monthly GIRO deduction amount of $50.
      2. The first few instalments could be combined and deducted on the first GIRO deduction date, depending on the date of filing of ECI. Please see example 2 below.
      3. IRAS reserves the right to vary the instalment plan for companies that file revised ECIs.

      e-File by 26th of each qualifying month to enjoy the maximum number of instalments allowable for that month.

      e-File byNumber of Instalments*

      26 Jan

      10

      26 Feb

      8

      26 Mar

      6

      After 26 Mar

      No instalments

      * The first few instalments could be combined and deducted on the first GIRO deduction date, depending on the date of filing of ECI. Please see example 2 below.

      Company A's financial year end is December. e-Filing of ECI is done in January and ten instalments are granted for the tax payable of $10,000.

      Filing Date

      Between 1 and 20 Jan

      Between 21 and 26 Jan

      1st GIRO Deduction On 6 Feb 6 Mar 

      Deduction Amount

      $1,000

      $2,000

      Subsequent Deduction

      Thereafter $1,000 will be deducted on the 6th of each month from Mar to Nov.

      There is no GIRO deduction on 6 Feb. The instalment amount for Feb and Mar will be deducted together on 6 Mar. 

      Thereafter $1,000 will be deducted on the 6th of each month from Apr to Nov.

      Calculation of ECI

      Companies need not factor in the Tax Exemption Scheme for New Start-Up Companies/ Partial Tax exemption and the YA 2019 Corporate Income Tax (CIT) rebate when filing their ECI. IRAS will compute these and allow the New Start-Up Companies/ Partial Tax exemption and YA 2019 CIT rebate automatically.

      Example: Calculation of ECI for YA 2019
      Your company’s Profit and Loss statement for financial year 2018 (Year of Assessment 2019) is as follows:

       Sales $ 80,000
       Less: Cost of goods sold $(35,000)
       Gross Profit $ 45,000
       Other Income: 
       Rental Income $1,200
       Less: Expenses 
       Advertisement $ (790)
       CPF $ (2,300)
       Depreciation $(300)
       Directors’ fees $(9,000)
       Printing and Stationery $ (290)
       Property Tax (rental property) $(300)
       Salaries $(24,000)
       Secretarial Fees $(310)
       Transport ( $200 was incurred on car SJX 123) $(780)
       Travelling Expenses$(560)
       Water & Electricity $(925)
       Net Profit before Tax $6,645

      The company also purchased a new private car (SJX 123), a computer for $1,200 and a filing cabinet for $300 in YA 2019. There were no unutilised capital allowances brought forward from the previous YA.

       The calculation of the company’s ECI is as follows:

      Net profit before Tax $ 6,645 
       Less: Separate Source Income 
       Rental Income $ (1,200)
       Add: Disallowable Expenses 
       Depreciation $ 300
       Property Tax (Rental Property) $ 300
       Transport (S-plated car) $200
       Adjusted profit before Capital Allowances $6,245
       Less: Capital Allowances for YA 2019 1 
       100% Write-Off for Low-Value Asset - Filing Cabinet $(300)
       100% Write-Off in One Year for Computer $(1,200)
       Adjusted profit after Capital Allowances $4,745
       Add: Separate Source Income 
       Rental income (net of Property Tax for rental income) $900
       Estimated Chargeable Income (before exempt amount)

       $5,645

      When e-Filing the ECI, the company can report its revenue as “$80,000” and ECI figure as “$5,645” under the 17% tax rate category. If the company also qualifies for the Tax Exemption Scheme for New Start-Up Companies, the company has to indicate accordingly in the relevant box of the ECI return. For more information, please refer to the File Estimated Chargeable Income (ECI) (1.13MB) user guide.


       1.No capital allowance is to be given on private cars (S-plated cars), RU-plated cars and company cars (Q-plated or S-plated cars). 

      Getting Your Tax Notice and Paying Estimated Tax

      After IRAS has processed the ECI form, your company will receive a Notice of Assessment (NOA), which is an official Notice that states the amount of tax to be paid. You can also view the NOA at mytax.iras.gov.sg. However, no NOA will be issued if your company filed a "Nil" ECI amount.

      The tax must be paid within one month from the date of the NOA, unless you are paying via instalment (GIRO). The NOA will include information on the various ways to pay.

      Ways to Pay

      There are two ways to pay your taxes:

      1. Payment by GIRO
        Companies that wish to pay taxes by instalment must sign up for GIRO. For more information, please refer to Applying for GIRO.
      2. Payment by other Electronic Modes
        You can also make payment via internet Banking, Phone Banking, NETS, etc.

      For details on other payment modes, please refer to How to Pay.

      GIRO Instalment Plans for Singapore-registered Companies

      You may qualify for GIRO instalment plan as long as you are a Singapore-registered company.

      • Can I e-File ECI if my company's financial year end shown on the e-Filing screen or the ECI letter received from IRAS is incorrect?

        Yes. You can proceed to e-File the ECI.

        Please also inform us of the correct financial year end by logging in to myTax Portal and updating the financial year end via the “Update Corporate Profile/ Contact Details” e-Service.

      • If I am authorised as a "Preparer" instead of an "Approver", can I e-File for my company?

        As a "Preparer", you can only enter the ECI amount for your company in mytax.iras.gov.sg. You cannot submit the filing details to IRAS. Only the "Approver" can submit the filing details to IRAS.

        If your company wants you to file ECI to IRAS, your company must authorise you as an "Approver" instead of "Preparer" so that you can submit the filing details to IRAS.

      • As a tax agent, can I e-File ECI for multiple clients in one submission?

        Yes, you can. However, for optimal system performance, please e-File for a maximum of four clients per submission.

        Those who e-File for five or six clients in one submission may encounter an error or slower processing time.

      • Will the NOAs be displayed if I e-File ECI for multiple clients?

        No. Upon successful submission to IRAS, you will receive a consolidated acknowledgement statement for all the companies e-Filed. The NOAs will be sent to your clients.
      • As a tax agent, how do I get an individual Acknowledgement Statement for each client when I file for multiple clients?

        You will have to e-File the ECI for each company separately if you wish to receive an individual acknowledgement statement for each company. 
      • What if I e-Filed the ECI beyond three months after the company’s financial year end?

        You can still e-File the ECI if no assessment for the YA has been issued to your company. However, you cannot pay by instalment. Instalments are only granted by IRAS when a company files its ECI within three months after its financial year end and is on GIRO.
      • What should I do if I encounter an error while e-Filing the ECI via myTax Portal?

        Please check the status of your filing by selecting <View Corporate Tax Filing Status> under e-Services for Corporate Tax.

        Please clear your browser's cache (temporary Internet files) before trying again. We encourage you to clear the cache and close active applications before you e-File. For instructions on clearing 'cache', please refer to Question 2 of the Technical FAQ.

          If you still encounter an error, please email us via myTax Mail with the following details:

          1. Date and time that you encountered the error.
          2. Tax Reference Number of the company and the individual who is e-Filing.
          3. Description of the error (e.g. after clicking "Submit" at Confirmation Statement).
          4. The operating system you are using (e.g. Windows XP, Vista).
          5. The browser type and version number (e.g. Firefox 2.0, IE 6).
          6. The error message(s) or the screenshot of the error(s).

          Alternatively, please call 1800-356 8622 for assistance.

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