What is ECI
ECI is an estimate of your company's taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).
Determining if Your Company Needs to File ECI
Your company has to file ECI within 3 months from the end of your financial year unless:
- Your company qualifies for the ECI filing waiver; or
- Your company is specifically not required to file ECI.
ECI Filing Waiver
Your company does not need to file ECI in any Year of Assessment (YA) when both criteria are met:
- Annual revenue1 is $5 million or below for the financial year; and
- ECI is nil for the YA. The ECI should be the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.
Your company is required to self-assess if it qualifies for the ECI filing waiver. If your company is new, learn when to file its first ECI.
Your company’s ECI filing status for the YA at mytax.iras.gov.sg may show 'Ready to File'. Nonetheless, if you qualify for the ECI filing waiver, you are not required to file. There is no need to seek confirmation from or inform IRAS of the waiver.
For the financial year ending 30 Jun 2021:
|Revenue||ECI||Does my company need to file ECI?|
Entities Specifically Not Required to File ECI
If your company falls within 1 of the following categories, it does not need to file ECI:
- Foreign ship owners or charterers whose local shipping agent has submitted/ will submit the Shipping Return (PDF, 144KB)
- 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
- Cases specifically granted the waiver to furnish ECI by IRAS
- Do I need to file the ECI for my company if it is nil?
You do not need to file the ECI for your company if it is nil and your company's annual revenue is $5 million or below.
If your company's ECI is nil and its annual revenue is more than $5 million, you are still required to file the ECI. You can fill in the ECI to be taxed at 17% as '0' in the digital service.
- What will happen if my company fails to file its ECI?
If your company is required to file its ECI but fails to do so within 3 months from the end of its financial year, a Notice of Assessment may be issued based on an estimation of your company's income.
Find out more about the estimated Notice of Assessment.
- I received a Notice of Assessment even though my company qualifies for the ECI filing waiver. What should I do?
IRAS may raise estimated assessments on companies which may not qualify for the ECI filing waiver based on the information available to us. Such situations are rare.
If your company qualifies for the ECI filing waiver but is issued a Notice of Assessment, write in via myTax Mail before the payment due date to confirm that your company's annual revenue is $5 million or below and the ECI is nil for the said Year of Assessment (YA). IRAS will amend the assessment accordingly and no enforcement action will be taken for non-payment of the estimated taxes.
- Will my company receive a notification to file its ECI?
Yes, IRAS sends a notification to companies before the end of their financial year on the need to file ECI. If your company assesses that it meets the conditions for the ECI filing waiver, it need not proceed with the filing.
Guidance on Filing ECI
When to File ECI
FILE WITHIN 3 MONTHS FROM END OF FINANCIAL YEAR
Your company will receive a notification from IRAS to file its ECI in the last month of its financial year.
If your company did not receive the notification and does not satisfy the conditions to be exempted from ECI filing, it is still required to file within 3 months from the end of its financial year.
Examples of ECI Filing Deadlines Based on Different Financial Year Ends
Advantages of Filing Early
FILE BY 26TH OF EACH QUALIFYING MONTH
Enjoy the maximum number of instalments when your company files by the 26th of each qualifying month. The earlier your company files, the greater the number of instalments it can enjoy. Your company must also be a Singapore-registered company and be on GIRO.
|Tax Payable on 1st ECI Filed Within||Number of Instalments Given|
|1 month from financial year end||10|
|2 months from financial year end||8|
|3 months from financial year end||6|
|After 3 months from financial year end||0|
1. The instalment plan is subject to a minimum monthly GIRO deduction amount of $50.
2. The 1st instalment may be combined with the 2nd instalment, depending on the date of filing of the ECI. See example 2 below.
3. IRAS may vary the instalment plan for companies that file revised ECIs.
Example 1: Determining the Number of Instalments Given
Company A’s financial year ends in Dec.
|ECI is Filed by||Number of Instalments Given*|
|After 26 Mar||0|
* The 1st instalment may be combined with the 2nd instalment, depending on the date of filing of ECI. See example 2 below.
Example 2: Determining the Date of 1st GIRO Deduction
Following Example 1 above, Company A files its ECI in Jan and 10 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 will take place on||6 Feb||6 Mar|
|1st Deduction amount||$1,000||$2,000|
|Subsequent deduction||$1,000 will be deducted on the 6th of each month from Mar to Nov.||There will be no GIRO deduction on 6 Feb. The instalment amount for Feb and Mar will be deducted together on 6 Mar.
$1,000 will be deducted on the 6th of each month from Apr to Nov.
How to Calculate ECI
IRAS will compute and allow the tax exemption for new start-up companies/ partial tax exemption automatically.
Property developers should report their ECI based on the Completed Contracts Method.
This is Company A’s Profit and Loss statement for the financial year 2020 (Year of Assessment (YA) 2021):
|Profit and Loss statement||$|
|Less: Cost of goods sold||(35,000)|
|Printing and Stationery||(290)|
|Property Tax (rental property)||(300)|
|Transport ($200 was incurred on car SJX 123)||(780)|
|Water & Electricity||(925)|
|Net Profit before Tax||6,645|
In YA 2021, Company A also purchased:
- A new private car (SJX 123)
- A computer for $1,200
- A filing cabinet for $300
There were no unutilised capital allowances brought forward from the previous YA.
Company A’s ECI is calculated as follows:
|Net profit before Tax||6,645|
|Less: Separate Source Income|
|Add: Disallowable Expenses|
|Property Tax (Rental Property)||300|
|Transport (S-plated car)||200|
|Adjusted profit before Capital Allowances||6,245|
|Less: Capital Allowances for YA 2021 1|
|100% Write-Off for Low-Value Asset - Filing Cabinet||(300)|
|100% Write-Off in 1 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 filing the ECI, Company A can report its revenue as '$80,000' and the ECI figure as '$5,645' under the 17% tax rate category.
View more examples on how to calculate ECI (PDF, 166KB).
How to File ECI
Do the following before you start filing:
- Ensure that you are duly authorised by your company as an 'Approver' for Corporate Tax (Filing and Applications) in Corppass. View our step-by-step guides for assistance on Corppass setup.
- Have your Singpass as well as your company’s Unique Entity Number (UEN)/ Entity ID.
File ECI via mytax.iras.gov.sg.
For assistance on filing, refer to these guides:
- For Companies: User Guide - File Estimated Chargeable Income (PDF, 463KB)
- For Tax Agents: User Guide - File Estimated Chargeable Income(PDF, 413KB)
Declaration of Revenue for ECI Filing
Your company's revenue must be declared when filing ECI.
Revenue is a company's main source of income and excludes items such as gain on disposal of fixed assets.
- If your company is an investment holding company, its main source of income is its investment income (e.g. interest and dividend income).
- Where the audited financial statements are not yet available, you may refer to the company’s management accounts for the purpose of declaring the revenue amount. If the actual revenue amount based on the audited financial statements differs from that declared during the ECI filing, but there is no change in your ECI, you do not need to revise the revenue amount.
- Can I still file my company’s ECI if its financial year end shown at mytax.iras.gov.sg or the ECI notification from IRAS is incorrect?
Yes. Do proceed to file the ECI.
You should also update the financial year end with the Accounting and Corporate Regulatory Authority (ACRA) via BizFile+. IRAS will then update its records based on the information filed with ACRA.
- I am authorised as a Corppass 'Preparer'. Can I file my company’s ECI on its behalf?
As a 'Preparer', you can only enter the ECI amount for your company at mytax.iras.gov.sg. You cannot file the ECI with IRAS.
Only the 'Approver' can file the ECI-with IRAS. Therefore, you have to be authorised by your company as an 'Approver' to file the ECI with IRAS.
- Can I file my company’s ECI if it has been more than 3 months after its financial year end?
Yes, you can still file the ECI if a Notice of Assessment for the Year of Assessment (YA) has not been issued to your company. However, your company will not be granted instalments for the payment of the estimated taxes. Instalments are only given to Singapore-registered companies that file their ECI within 3 months from the end of their financial year and are on GIRO.
- What should I do if I encounter an error while filing the ECI via mytax.iras.gov.sg?
First, check your filing status by selecting the View Corporate Tax Filing Status digitalservice.
If your status is marked as ‘Ready to File’, clear your browser's cache (temporary Internet files) and close any active application(s) before trying to file again. For instructions on clearing 'cache', refer to Question 2 of the Technical FAQ.
If you still encounter an error, email IRAS via myTax Mail with the following details:
- Date and time that you encountered the error
- The company’s Unique Entity Number (UEN)/ Entity ID and the individual who is filing
- Description of the error (e.g. after clicking 'Submit' at Confirmation Statement)
- The operating system you are using (e.g. Windows XP, Vista)
- The browser type and version number (e.g. Firefox 2.0, IE 6)
- The error message(s) or the screenshot of the error(s)
You may also call 1800-356 8622 (local calls only) or 65 6356 8622 for assistance.
- As a tax agent, can I file the ECI for multiple clients in a single submission?
Yes, you can.
For optimal system performance, you should file for a maximum of 4 clients per submission. Filing for more clients in a single submission may result in an error or slower processing time.
- Will the Notices of Assessments be displayed if I file the ECI for multiple clients in a single submission?
No. You will receive a consolidated acknowledgement statement for all the clients that you file for in a single submission. The Notices of Assessment will be issued directly to your clients.
- Can I get an individual acknowledgement statement for each client if I file the ECI for multiple clients in a single submission?
No. You have to file the ECI for each company separately in order to receive an individual acknowledgement statement for each company.
- How do I calculate the ECI amount to be entered in the File ECI digital service if I have a claim for relief?
If there is a claim of loss items under the Group Relief System or Loss Carry-Back Relief System, the ECI should be the amount after taking into account the loss items claimed, but before deducting the amount to be exempted under the partial tax exemption scheme or tax exemption scheme for new start-up companies.
If there is a claim for foreign tax credit, you may calculate the ECI using the relevant formula (PDF, 166KB).
Paying Estimated Tax
You can view your company’s Notice of Assessment at mytax.iras.gov.sg after IRAS has processed its ECI filing. The Notice of Assessment is an official Notice that states the amount of tax to be paid.
No Notice of Assessment will be issued if your company files nil for ECI.
When to Pay Estimated Tax
PAY WITHIN 1 MONTH
Your company needs to pay the tax payable amount within 1 month from the date of the Notice of Assessment, unless it qualifies to pay via instalments.
Difference in ECI Amount Declared and Chargeable Income Reported in Form C-S/ Form C-S (Lite)/ Form C
|Chargeable income reported in Form C-S/ Form C-S (Lite)/ Form C||Company’s action regarding payment|
|Less than ECI amount declared earlier||Excess tax paid earlier will be refunded automatically.|
|More than ECI amount declared earlier||Pay the additional tax within 1 month from the date of the Notice of Assessment.|
How to Pay Estimated Tax
There are 2 ways to pay your taxes:
- Payment by GIRO
Singapore-registered companies are encouraged to sign up for GIRO to enjoy instalment payment arrangements for their estimated tax.
SIGN UP FOR GIRO 3 WEEKS BEORE FILING ECI
If your company does not have an existing GIRO arrangement for Corporate Income Tax, sign up for GIRO at least 3 weeks before filing the ECI. The GIRO arrangement must be approved before the payment due date (i.e. 1 month from the date of the Notice of Assessment) for your company to qualify to pay via instalments.
If the GIRO arrangement is not approved before the payment due date, your company will have to pay the full amount of estimated tax within 1 month from the date of the Notice of Assessment.
Check the status of your company's GIRO application through the Corporate Income Tax integrated phone service (PDF, 371KB).
- Electronic Payment
You can make payment through electronic payment methods such as Internet Banking, Phone Banking and NETS. View details on all electronic payment modes .
If your company is experiencing difficulties in paying the taxes, read about the support measures available.
Revising ECI After Filing
How to Revise ECI
For assistance on revising ECI, refer to these guides:
Late Filing/ Failure to File ECI
Estimated Notice of Assessment
If your company is late in filing or fails to file its ECI, an estimated Notice of Assessment may be issued based on your company’s past years’ income or other information available to IRAS.
PAY WITHIN 1 MONTH
Your company has to pay the full tax amount within 1 month from the date of the Notice of Assessment. It will not enjoy instalment payment.
Payment must be made based on the estimated Notice of Assessment even if your company has filed an objection. If the assessment is subsequently revised, any excess payment will be refunded to your company.
Late payment penalties will be imposed and enforcement actions may be taken if payment is not received by the due date.
Objection to Estimated Assessment
OBJECT WITHIN 2 MONTHS
If your company disagrees with the estimated tax assessment, an objection must be filed within 2 months from the date of the Notice of Assessment.
When filing the objection, your company has to provide the reasons for the late filing or failure to file ECI and the revised ECI amount.