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Estimated Chargeable Income, or ECI, is your own estimate of the company's taxable profit for a Year of Assessment. You file it with IRAS, the Singapore tax authority, within 3 months of the end of your financial year. If annual revenue is S$5 million or below and the ECI is nil, you do not need to file.
Checked against the IRAS ECI page.
SingaporeCompanySetupGuide.com is an independent guide, not IRAS and not a tax agent. If you want someone to file for you, the quote form on this page sends your request to providers that may pay us a referral fee.
What is ECI and why does IRAS ask for it?
ECI is the profit your company expects to be taxed on, after you take off tax-allowable expenses. It comes before the Form C-S, which is the full return due by 30 November. ECI gives IRAS an early number so the tax bill starts sooner and you can pay it over several months. It also means the final return holds no big surprise.
The figure you file is the amount before any tax exemption. IRAS adds the partial tax exemption or the new start-up exemption itself. For a new company you only tick the start-up box in the digital service. The corporate tax page explains the 17% rate and the exemptions.
Who has to file ECI, and who can skip it?
Every company has to file within 3 months of its financial year end, unless one of two exceptions applies.
| Situation | Do you file ECI? |
|---|---|
| Revenue S$5 million or below and ECI is nil | No, the waiver applies |
| Revenue S$5 million or below and ECI is above nil | Yes |
| Revenue above S$5 million and ECI is nil | Yes, enter 0 in the service |
| Revenue above S$5 million and ECI above nil | Yes |
| Foreign universities, certain unit trusts, some foreign ship owners | No, listed by IRAS as not required |
Revenue means your main source of income. It leaves out items such as gains from selling fixed assets. For an investment holding company, revenue is its investment income. You assess the waiver yourself. IRAS says there is no need to ask it to confirm, and your myTax status may still show "Ready to File".
If IRAS issues an estimated assessment even though you qualify for the waiver, write in through myTax Mail before the payment due date and state that revenue is S$5 million or below and ECI is nil. IRAS then amends the assessment.
When is the ECI deadline?
The deadline is 3 months after the financial year end. IRAS also sends a notification in the last month of the financial year, but missing it does not move the date.
| Financial year end | ECI due |
|---|---|
| 31 December | 31 March |
| 31 March | 30 June |
| 30 June | 30 September |
| 30 September | 31 December |
If you change your financial year end across two Years of Assessment, you prepare two tax computations and file two ECIs. Update the year end with ACRA through Bizfile so the IRAS record matches.
How do you work out the ECI figure?
Start with net profit before tax from your accounts. Take out separate-source income such as rent. Add back expenses the tax law does not allow, such as depreciation. Deduct capital allowances. Then add the separate-source income back net of its own costs.
IRAS gives a worked example. A company has sales of S$80,000 and a net profit before tax of S$6,645.
| Step | Amount |
|---|---|
| Net profit before tax | S$6,645 |
| Less rental income (separate source) | S$1,200 |
| Add back depreciation S$300, property tax S$300, S-plated car transport S$200 | S$800 |
| Adjusted profit before capital allowances | S$6,245 |
| Less capital allowances: filing cabinet S$300, computer S$1,200 | S$1,500 |
| Adjusted profit after capital allowances | S$4,745 |
| Add net rental income | S$900 |
| ECI before exempt amount | S$5,645 |
When you file, you declare revenue of S$80,000 and an ECI of S$5,645 under the 17% category. If audited accounts are not ready, use management accounts for the revenue figure. You do not need to revise revenue later if the ECI stays the same.
How do you file ECI with IRAS?
Filing is online on myTax Portal. You need these first.
- A person authorised as an Approver for Corporate Tax (Filing and Applications) in Corppass. A Preparer can key in the amount but cannot submit. The Corppass guide shows how to set this up.
- That person's Singpass and the company's UEN.
- Your estimated profit and the revenue figure.
Then log in to mytax.iras.gov.sg and open the File ECI service. IRAS issues a Notice of Assessment after it processes the filing. No notice is issued if you file nil.
Can you pay in instalments?
Yes, and the earlier you file, the more instalments you get. The company must be Singapore-registered and on GIRO.
| ECI filed within | Instalments |
|---|---|
| 1 month of year end | 10 |
| 2 months of year end | 8 |
| 3 months of year end | 6 |
| After 3 months | 0 |
The minimum monthly GIRO deduction is S$50. For the top instalment count, file by the 26th of the qualifying month. If you have no GIRO for corporate tax, apply at least 3 weeks before you file, and make sure it is approved before the payment due date. Without GIRO you pay the full amount within 1 month of the Notice of Assessment.
What if your ECI turns out wrong?
Two things can happen when you later file Form C-S, the full return.
- If chargeable income is lower than your ECI, IRAS refunds the excess tax automatically.
- If it is higher, you pay the extra within 1 month of the new Notice of Assessment.
A large gap may make IRAS ask for an explanation. To correct the ECI before then, use the Revise/Object to Assessment service. See the Form C-S page for the final return.
What happens if you file ECI late?
IRAS can issue an estimated Notice of Assessment based on your past income or other information. You pay the full tax within 1 month and get no instalments. You pay even if you object. Late payment penalties and enforcement apply if the money does not arrive.
If you disagree with the estimate, file an objection within 2 months of the notice, with your reason for the delay and the revised ECI. You can still file a late ECI if no Notice of Assessment has been issued, but instalments are gone.
IRAS sets out a 5% late payment penalty on unpaid tax, then 1% a month after 60 days, up to 12%. The Form C-S page covers those and the composition amount of up to S$5,000.
Do you need an accountant for ECI?
You do not need one. A company with simple books and one income stream can file it in minutes. An accountant earns the fee when profit is close to the S$5 million revenue line, when you have losses or reliefs to apply, or when the financial year end changes. Many accounting services providers include ECI in an annual compliance package. Ask for the scope in writing.
Want a provider to handle it? Use the quote form on this page, and we pass your request to Singapore firms that file ECI for companies like yours.
Sources
- IRAS, Estimated Chargeable Income (ECI) Filing, https://www.iras.gov.sg/taxes/corporate-income-tax/estimated-chargeable-income-(eci)-filing (deadline, waiver, instalments, worked example, late filing).
- IRAS, Overview of Form C-S, Form C-S (Lite) and Form C, https://www.iras.gov.sg/taxes/corporate-income-tax/form-c-s-form-c-s-(lite)-form-c-filing/overview-of-form-c-s-form-c-s-(lite)-form-c (how ECI relates to the return).
- IRAS, Late payment or non-payment of Corporate Income Tax, https://www.iras.gov.sg/taxes/corporate-income-tax/corporate-income-tax-payment/late-payment-or-non-payment-of-corporate-income-tax (5% penalty, 1% a month, 12% cap).
