Corporate Income Tax (CIT) Rebate on ECI Filed for Year of Assessment (YA) 2020

For YA 2020, companies will be granted a CIT tax rebate of 25% of the corporate tax payable, subject to a cap of $15,000.

Companies need not factor in the CIT rebate when filing their ECI for YA 2020 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

From YA 2020, e-Filing of the ECI is compulsory for all companies.

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 the Corporate Income Tax returns (including ECI, and Form C-S/ C) is compulsory. A phased approach is adopted from YAs 2018 to 2020 as follows:

 YA Target Group for Compulsory e-Filing
 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

 

e-File your ECI 


Updated! As part of our support for taxpayers in light of the latest measures to manage the COVID-19 situation, companies with Financial Years ending in Jan and Feb 2020 will be granted an automatic extension till 30 Jun 2020 to file their YA 2021 ECI. These companies who are on GIRO will continue to enjoy instalments (PDF, 63KB) to settle their estimated tax on YA 2021 ECI e-Filed by 30 Jun 2020.

 

Step 1: 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.

Step 2: e-File via mytax.iras.gov.sg

 For assistance on e-Filing, please refer to the relevant guides:

Companies that file their ECI in Apr 2020 will receive their NOAs from IRAS progressively from May 2020.

    Pay Your Taxes in Instalments through GIRO

    Only companies that are on GIRO are allowed to pay their taxes in instalments. 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 (PDF, 371KB).

    As announced in Budget 2020 on 18 Feb 2020, companies that are on GIRO and filed their ECI on time (i.e. within three months from the end of their financial year) (i.e. qualifying companies) will automatically qualify for an additional two months of interest-free instalment, if the ECI is filed as follows:

    1. during the period from 19 Feb 2020 to 31 Dec 2020 (both dates inclusive); or
    2. before 19 Feb 2020 and the company has an ongoing instalment payment to be made in Mar 2020.

    Qualifying companies who have filed their ECI before 19 Feb 2020 and have ongoing instalment payments to be made in Mar 2020 would have received a letter from IRAS on the automatic two months extension of the instalment plan. Companies can also view their revised instalment plan at myTax Portal.

    The table below sets out the number of instalments a qualifying company would receive if it qualifies for the automatic two months extension of the instalment plan:

     No. of Instalments Given (Notes 1 to 3)  
    Tax payable on first ECI e-Filed withinCurrent instalment planExtended instalment plan for qualifying companies
    1 month from financial year end1012
    2 months from financial year end810
    3 months from financial year end68
    After 3 months from financial year endNo instalments allowedNo instalments allowed

    Notes
    1. The instalment plan is subject to a minimum monthly GIRO deduction amount of $50.
    2. The first few instalments may 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 may 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*Extended instalment plan for qualifying companies*
    26 Jan 1012
    26 Feb 810
    26 Mar 68
    After 26 Mar No instalmentsNo 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.

    e-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.

    * Under the Resilience Budget announced on 26 Mar 2020, all companies with Corporate Income Tax (CIT) payments due in the months of Apr, May and Jun 2020 will be granted an automatic three-month deferment of these payments. Please refer to Deferment of Corporate Income Tax (CIT) Payments for more information on how the three-month CIT payment deferment applies to tax payable on ECI e-Filed.

    Calculation of ECI

    Companies need not factor in the Tax Exemption Scheme for New Start-Up Companies/ Partial Tax Exemption and the YA 2020 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 2020 CIT rebate automatically.

    Example: Calculation of ECI for YA 2020
    Your company’s Profit and Loss statement for financial year 2019 (Year of Assessment 2020) 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 2020. 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 2020 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) (PDF, 1.13MB) user guide.

    You may also refer to Note 12 of the Explanatory Notes for ECI for YA 2020 (PDF, 189KB) for more examples on how to calculate the ECI.


     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 your company's ECI, you 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). Deferment of tax payment may apply as announced in the Resilience Budget on 26 Mar 2020.

    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 Apply for GIRO arrangement
    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 Electronic Payment Modes.

    If your company requires assistance in paying the taxes, please refer to Experiencing Difficulties in Paying Your Tax for more information.

    GIRO Instalment Plans for Singapore-registered Companies

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

    Deferment of Corporate Income Tax (CIT) Payments

     New! To further ease the cash flow needs for companies in the immediate period, it was announced in the Resilience Budget on 26 Mar 2020 that all companies with CIT payments due in the months of Apr, May and Jun 2020 will be granted an automatic three-month deferment of these payments. The CIT payments that are deferred from Apr, May and Jun 2020 will be collected in Jul, Aug and Sep 2020 respectively. The deferment applies to CIT payments due in the months of Apr, May and Jun 2020, regardless of which YA the taxes or payments relate to. This relief measure complements the automatic extension of two months interest-free instalments as announced in Budget 2020 on 18 Feb 2020.

    Companies with corporate tax payments that are due from 1 Jul 2020 onwards will not be given any deferral and are required to settle their payment(s) by the stipulated due date(s).

    The table below illustrates how the automatic three-month deferment of CIT payments works for a company that is on GIRO and has either ongoing instalment payments or one-time payment due in Apr/May/Jun 2020:

    Instalment Payments  
    Instalment payment deduction date under current instalment planInstalment payment deduction date under revised instalment plan
    6 Apr 20206 Jul 2020
    6 May 20206 Aug 2020
    6 Jun 20206 Sep 2020
    6 Jul 20206 Oct 2020
    6 Aug 20206 Nov 2020
    6 Sep 20206 Dec 2020

    View Worked Examples (PDF, 108KB) for more illustrations on the new dates for GIRO instalment payments with the CIT payment deferment. 

    One-time Payment (Company Not on GIRO) 
    Current payment due date stated on NOARevised payment due date
    6 Apr 20206 Jul 2020
    15 May 2020 15 Aug 2020
    30 Jun 2020 30 Sep 2020
     1 Jul 2020The payment deferment does not apply. Please make payment for the tax due by 1 Jul 2020

    Eligible companies can expect to receive a letter from IRAS by Apr 2020. Companies who are on GIRO will be able to view their revised instalment plans at myTax Portal from 1 May 2020. Companies that are not on GIRO and are required to make a one-time CIT payment in Apr/May/Jun 2020 can use the Corporate Tax Payment Deferment Calculator (XLSX, 28KB) to view the revised payment due date. 

    Companies that do not wish to enjoy the CIT payment deferment may:

    If the company isWhat should the company do?
    On GIRO

    Write to ctpayment@iras.gov.sg to inform IRAS to continue with the original GIRO deduction(s) in Apr, May and/ or Jun 2020. Please also provide the following details:

    1. Email Subject Header “Request to Opt Out of CIT Payment Deferment”;
    2. Full name and tax reference number of the company; and
    3. Date of “GIRO Deduction Plan for Corporate Tax” Notice (in dd/mm/yyyy format) for which the company would like to opt out of the payment deferment.
    Not on GIRO

    Proceed to make early payment for the corporate income tax. There is no need to write-in to inform IRAS of the early payment.

     

    • 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 (DOC, 3.45MB).

        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.

      • How do I compute the ECI amount to be completed in the ECI form if there is a claim for relief?

        If there is a claim for relief (e.g. foreign tax credit), you may compute the ECI using the relevant formula in Note 10 of the Explanatory Notes for ECI for YA 2020 (PDF, 189KB). You may also refer to Note 12 of the Explanatory Notes for ECI for YA 2020 (PDF, 189KB) for examples.