What is ECI?
Estimated Chargeable Income (ECI), is an estimate of a company’s chargeable income for a Year of Assessment (YA).
Every company is required by IRAS to submit an ECI within 3 months from the end of each financial year.
Who needs to file the ECI?
Your company has to furnish its Estimated Chargeable Income (ECI) within 3 months after the end of its financial year end.
What to file?
If audited accounts are not available, a company may refer to its management accounts to declare the revenue amount. If the revenue amount based on audited accounts turn out be different from that declared in the ECI Form, and there is no change in your ECI, you are not required to revise the revenue figure.
Advantage of filing ECI early
Companies that e-file their ECI statements enjoy more installment plans to pay their taxes compared to companies that file by paper. In addition, the earlier the ECI statement is submitted, the more installments are bestowed to your firm. For example, a company whose financial year ends in December enjoys the following number of payment installments.
Failure to comply with filing of ECI
If a company has failed to comply with the ECI requirement, IRAS shall issue a Notice of Assessment (NOA) based on its estimation of its income. The company then has one month from the date of IRAS’ NOA to submit its written objection if it does not agree with IRAS’ estimated assessment. Otherwise, the NOA is recognized as final.