Are you Ready for IRAS ECI Submission?
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:
A company qualifies for the ECI filing waiver
Company is specifically not required to file ECI.
ECI Filling Waiver
Your company is required to self-assess if it qualifies for the ECI filing waiver. The 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
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.
How to Calculate ECI
The ECI amount that your company files should not include the tax exemption for new start-up companies/ partial tax exemption.
IRAS will compute and allow the tax exemption for new start-up companies/partial tax exemption automatically.
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.
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.
There are 2 ways to pay Estimated tax:
Payment by GIRO - Singapore-registered companies are encouraged to sign up for GIRO to enjoy instalment payment arrangements for their estimated tax.
Electronic Payment - You can make payment through electronic payment methods such as Internet Banking, Phone Banking and NETS.
ECI is an estimate of your company's taxable profits for a Year of Assessment. The company has to file ECI within 3 months from the end of your financial year and you can view your company’s Notice of Assessment at mytax.iras.gov.sg and login to personal or business, after IRAS has processed its ECI filing to pay your tax.
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