ECI Filing Services in Singapore
Estimated Chargeable Income (ECI) filing is a mandatory requirement for all companies in Singapore, providing an estimate of the income earned or to be earned in a financial year. It acts as an advance notice to the Inland Revenue Authority of Singapore (IRAS) regarding the company's tax liability. At Apexia Corporate Advisory, we simplify ECI filing, ensuring compliance and peace of mind.
What is Estimated Chargeable Income (ECI)?
ECI is an estimate of a company's chargeable income (income after deducting tax-allowable expenses) for a specific Year of Assessment (YA).
Who Must File ECI in Singapore?
All Singapore-registered companies are required to file ECI within 3 months from the end of their financial year unless they meet the criteria for an ECI filing waiver or are specifically exempt.
ECI Filing Waiver Criteria
Companies qualify for a waiver if they meet the following conditions:
- Annual revenue for the financial year (FY) does not exceed S$5 million.
- ECI is nil for the YA (calculated before deducting any partial or startup tax exemptions).
Entities Exempt from ECI Filing
- Foreign universities
- Foreign ship owners or charterers with a Shipping Return submitted by their local agent
- Approved CPF and designated unit trusts
- Real estate investment trusts with special tax treatments under Section 43(2) of the Income Tax Act 1947
- Entities granted specific waivers by IRAS
Benefits of ECI Filing
- Compliance and Penalty Avoidance
Filing ECI on time ensures compliance with IRAS regulations, avoiding financial penalties or legal repercussions. - Enhanced Cash Flow Management
Accurate documentation of profits and losses through ECI filing aids financial planning and informed decision-making. - Better Tax Understanding
Regular filing helps companies stay updated on tax obligations and ensures adherence to filing deadlines, reducing the risk of last-minute errors.
When to File ECI?
Companies must file ECI within 3 months from the end of the FY. IRAS typically notifies companies to file ECI in the last month of the FY. Even without a notification, eligible companies must still file by the deadline if they don't meet exemption conditions.
Early Filing Benefits
Companies on GIRO arrangements that file ECI early (by the 26th of each qualifying month) can enjoy the maximum number of installment payments.
Steps to File ECI
Step 1: Preparation
- Authorize an “Approver” for Corporate Tax (Filing and Applications) via Corppass.
- Ensure access to Singpass and the company's Unique Entity Number (UEN).
Step 2: Filing Through myTax Portal
- Log in to the myTax Portal.
- Declare the company's revenue while filing ECI. Investment holding companies must disclose income sources such as dividends.
How to Calculate ECI?
- Exclude tax exemptions (e.g., startup or partial tax exemptions). IRAS will automatically compute these in the tax assessment.
- Indicate eligibility for tax exemption schemes when using the File ECI digital service.
Common ECI Filing Mistakes
- Inaccurate Income Records: Ensure all income sources are accounted for.
- Incorrect Calculations: Verify pre-filled information for accuracy.
- Failure to Include All Income Sources: Missing income streams can lead to penalties.
Review financial data thoroughly to avoid discrepancies with the company's FYE figures.
Payment and Penalties for ECI Filing
When to Pay ECI?
Companies must pay the ECI amount within 1 month of receiving the Notice of Assessment (NOA), unless eligible for installment payments through GIRO.
ECI Filing Penalties
Late or non-filing can result in:
- An estimated NOA based on past income or available data.
- Full payment of tax within 1 month of NOA issuance without installment options.
- Additional late payment penalties and possible enforcement actions.
Companies can object to an estimated NOA within 2 months, but payment must still be made based on the original assessment.
Why Outsource ECI Filing to Apexia Corporate Advisory?
Outsourcing ECI filing to Apexia Corporate Advisory ensures:
- Accurate Submissions: Avoid costly mistakes with expert assistance.
- Compliance Expertise: Stay aligned with IRAS regulations.
- Focus on Growth: Free up time to concentrate on business priorities.
Contact Apexia Corporate Advisory Today. Simplify your ECI filing process with Apexia Corporate Advisory. Our experienced tax consultants provide tailored solutions to meet your compliance needs while ensuring accuracy and timeliness. Get in Touch to learn more!
