When and why should you file the ECI or Estimated Chargeable Income of your company?

What is ECI and its purpose? Are there any exemptions from Filing Estimated Chargeable Income (ECI)?

IRAS (Inland Revenue Authority of Singapore) has made it mandatory for all the businesses to file their ECI.

When to file

A company is required to file ECI or Estimated Chargeable Income within the three months of the end of the company’s fiscal year. For instance, if a company’s financial year ends on 31st December 2019, it is required to file ECI by 31^st March 2020.

Why filing is important

There are two important reasons for a company to file ECI:

• ECI helps policymakers on a macro level. It helps in the assessment of how various industries are doing. They can use this data to adjust their policies in ways that might benefit your industry and firm in the future.
• It is mandatory to file the ECI on time. It is one of the annual corporate compliance requirements for a company in Singapore. If you fail to submit in time, IRAS will issue a Notice of Assessment (NOA, which is an estimate of the company’s total revenue as per IRAS. You can submit a Notice of Objection if you do not agree with the tax figure mentioned by IRAS in NOA.

If it is too much hassle for you as a new business owner to comply with all the rules and regulations of IRAS’s tax filing system, then you can get in touch with us. We provide tax filing services for businesses, so there will be no delay in submitting ECI.