Estimate Chargeable Income (ECI) Filing
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Estimated Chargeable Income (ECI) is an estimate of your company's taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).
For details of taxable income and tax-allowable expenses, refer to Taxable and Non-Taxable Income and Business Expenses.
e-File early to pay taxes in instalments. The earlier you e-File, the greater the number of instalments.
Corporate Income Tax (CIT) Rebate on ECI Filed for Year of Assessment (YA) 2020
For YA 2020, companies will be granted a CIT tax rebate of 25% of the corporate tax payable, subject to a cap of $15,000.
Companies need not factor in the CIT rebate when filing their ECI for YA 2020 as IRAS will compute and allow the rebate automatically.
For more information on the CIT rebate, please refer to Corporate Tax Rates, Corporate Income Tax Rebates and Tax Exemption Schemes.
Compulsory e-Filing for ECI
From YA2020, e-FIling of the ECI is compulsory for all companies.
In line with Government's direction for more cost effective delivery of public services and the Smart Nation vision to harness technology to enhance productivity, e-Filing of the Corporate Income Tax returns (including ECI, and Form C-S/ C) is compulsory. A phased approach is adopted from YAs 2018 to 2020 as follows:
| YA | Target Group for Compulsory e-Filing |
|---|---|
| 2018 onwards | Companies with revenue more than $10 million in YA 2017 |
| 2019 onwards | Companies with revenue more than $1 million in YA 2018 |
| 2020 onwards | All companies |
e-File Your ECI
Step 1: Before e-Filing, please ensure:
- You have been authorised by the company as an "Approver" for Corporate Tax (Filing and Applications) in Corppass; and
- You have your Singpass as well as the company's Unique Entity Number (UEN)/ Entity ID.
For assistance on Corppass setup, please refer to Step-by-Step Guides.
Step 2: e-File via mytax.iras.gov.sg
For assistance on e-filing, please refer to the relevant guides:
Pay Your Taxes in Installments through GIRO
Only Singapore-registered companies that are on GIRO are allowed to pay their taxes in instalments. Companies that do not have an existing GIRO arrangement for Corporate Tax are encouraged to apply for GIRO at least 3 weeks before e-Filing their ECI.
If the GIRO arrangement is not approved before the payment due date, the company will not be eligible for instalment payment and will need to pay the full amount of estimated tax by the payment due date. You can check the status of your company's GIRO application through the Corporate Tax Integrated Phone Service(PDF, 371KB).
| Tax payable on First ECI e-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 | No instalments allowed |
Notes
e-File by 26th of each qualifying month to enjoy the maximum number of instalments allowable for that month.
Example 1: Determining the Number of Instalments Given
Company A's financial year ends in Dec.
| e-File by | Number of Instalments Given |
|---|---|
| 26 Jan | 10 |
| 26 Feb | 8 |
| 26 Mar | 6 |
| After 26 Mar | No instalments allowed |
* The first few instalments could be combined and deducted on the first GIRO deduction date, depending on the date of filing for ECI. Please see example 2 below.
Example 2: Determining the Date of First GIRO Deduction
Following Example 1 above, Company A e-Files its ECI in Jan and ten instalments are granted for the tax payable of $10,000.
| Tax payable on First ECI e-Filed Within | Between 1 and 20 Jan | Between 21 and 26 Jan |
|---|---|---|
| 1st Giro Deduction On | 6 Feb | 6 Mar |
| Deduction Amount | $1,000 | $2,000 |
| 3 months from financial year end | Thereafter, $1,000 will be deducted on the 6th of each month from Mar to Nov. | There is no GIRO deduction on 6 Feb. The instalment amount for Feb and Mar will be deducted together on 6 Mar. Thereafter, $1,000 will be deducted on the 6th of each month from Apr to Nov. |
Calculation of ECI
Companies need not factor in the Tax Exemption Scheme for New Start-Up Companies/ Partial Tax Exemption and the YA 2020 Corporate Income Tax (CIT) rebate when filing their ECI. IRAS will compute these and allow the New Start-Up Companies/ Partial Tax exemption and YA 2020 CIT rebate automatically.
Property developers should report their ECI based on the Completed Contracts Method.
Example: Calculation of ECI for YA 2020
Your company’s Profit and Loss statement for financial year 2019 (Year of Assessment 2020) is as follows:
| Sales | $80,000 |
| Less: Cost of Goods Sold | $(35,000) |
| Gross Profit | $45,000 |
| Other Income: | |
| Rental Income | $1,200 |
| Less: Expenses | |
| Advertisement | $(790) |
| CPF | $(2,300) |
| Depreciation | $(300) |
| Directors' Fees | $(900) |
| Printing and Stationery | $(290) |
| Property Tax (rental property) | $(300) |
| Salaries | $(24,000) |
| Secretarial Fees | $(310) |
| Transport ($200 was incurred on car SJX 123) | $(780) |
| Travelling Expenses | $(560) |
| Water and Electricity | $(925) |
| Net Profit before Tax | $6,645 |
The company also purchased a new private car (SJX 123), a computer for $1,200 and a filing cabinet for $300 in YA 2020. There were no unutilised capital allowances brought forward from the previous YA.
The calculation of the company's ECI is as follows:
| Net profit before Tax | $6,645 |
| Less: Separate Source Income | |
| Rental Income | $(1,200) |
| Add: Disposable Expenses | |
| Depreciation | $300 |
| Property Tax (Rental Property) | $300 |
| Transport (S-plated car) | $200 |
| Adjusted profit before Capital Allowances | $6,245 |
| Less Capital Allowances for YA 20201 | |
| 100% Write-Off for Low-Value Asset - Filing Cabinet | $(300) |
| 100% Write-Off in One Year for Computer | $(1,200) |
| Adjusted Profit after Capital Allowances | $4,745 |
| Add: Separate Source Income | |
| Secretarial Fees | $$900 |
| Estimated Chargeable Income | $5,645 |
When e-Filing the ECI, the company can report its revenue as “$80,000” and ECI figure as “$5,645” under the 17% tax rate category. If the company also qualifies for the Tax Exemption Scheme for New Start-Up Companies, the company has to indicate accordingly in the relevant box of the ECI return. For more information, please refer to the File Estimated Chargeable Income (ECI) (PDF, 947KB) user guide.
Please click here (PDF, 164KB) for more examples on how to calculate the ECI.
1 No Capital Allowance is to be given on Private Cars (S-plated cars), RU-plated cars and Company Cars (Q-plated or S-plated cars).
Getting Your Tax Notice and Paying Estimated Tax
After IRAS has processed your company's ECI, you will receive a Notice of Assessment (NOA), which is an official Notice that states the amount of tax to be paid. You can also view the NOA at mytax.iras.gov.sg. However, no NOA will be issued if your company filed a "Nil" ECI amount.
The tax must be paid within one month from the date of the NOA, unless you are paying via instalment (GIRO).
THE NOA will include information on the various ways to pay.
Ways to Pay
There are two ways to pay your taxes:
- Payment by Giro
Companies that wish to pay taxes by instalment must sign up for GIRO. For more information, please refer to Apply for GIRO arrangement.
- Payment by other Electronic Modes
You can also make payment via internet Banking, Phone Banking, NETS, etc.
For details on other payment modes, please refer to Electronic Payment Modes.
If your company requires assistance in paying the taxes, please refer to Experiencing Difficulties in Paying Your Tax for more information.
FAQs
Common FAQs
Filing ECI
1. Can I e-File ECI if my company's financial year end shown on the e-Filing screen or the ECI letter received from IRAS is incorrect?
Yes. You can proceed to e-File the ECI.
Please also inform us of the correct financial year end by logging in to myTax Portal and updating the financial year end via the "Update Corporate Profile/ Contact Details” e-Service.
2. If I am authorised as a "Preparer" instead of an "Approver", can I e-File for my company?
As a "Preparer", you can only enter the ECI amount for your company in mytax.iras.gov.sg. You cannot submit the filing details to IRAS. Only the "Approver" can submit the filing details to IRAS.
If your company wants you to file ECI to IRAS, your company must authorise you as an "Approver" instead of "Preparer" so that you can submit the filing details to IRAS.
3. What if I e-Filed the ECI beyond three months after the Company's financial year end?
You can still e-File the ECI if no assessment for the YA has been issued to your company. However, you cannot pay by instalment. Instalments are only granted by IRAS when a company files its ECI within three months after its financial year end and is on GIRO.
4. What should I do if I encounter an error while e-Filing the ECI via myTax Portal?
Please check the status of your filing by selecting View Corporate Tax Filing Status under e-Services for Corporate Tax.
Please clear your browser's cache (temporary Internet files) before trying again. We encourage you to clear the cache and close active applications before you e-File. For instructions on clearing 'cache', please refer to Question 1 of the Technical FAQ.
If you still encounter an error, please email us via myTax Mail with the following details:
- Date and time that you encountered the error
- Date and time that you encountered the error.
- Tax Reference Number of the company and the individual who is e-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).
Alternatively, please call 1800-356-8622 for assistance.
Filing ECI for Multiple Clients
1. As a tax agent, can i e-File ECI for multiple clients in one submission?
Yes, you can. However, for optimal system performance, please e-File for a maximum of four clients per submission.
Those who e-File for five or six clients in one submission may encounter an error or slower processing time.
2. Will the NOAs be displayed if I e-File ECI for multiple clients?
No. Upon successful submission to IRAS, you will receive a consolidated acknowledgement statement for all the companies e-Filed. The NOAs will be sent to your clients.
3. As a tax agent, how do I get an individual Acknowledgement Statement for each client when I file for multiple clients?
You will have to e-File the ECI for each company separately if you wish to receive an individual acknowledgement statement for each company.
Calculation of ECI
1. How do I compute the ECI amopunt to be completed in the ECI form if there is 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 compute the ECI using the relevant formula here (PDF, 164KB).