ECI or “Estimated Chargeable Income”
ECI is an estimate of the company’s taxable income (after deducting tax-allowable expenses) for a Year of Assessment (YA). Besides stating the ECI, you have to declare the company’s revenue in the ECI Form. This declaration is compulsory with effect from Jan 2017.
Revenue refers to a company’s main source of income, and excludes items like gain on disposal of fixed assets. If your company is an investment holding company, your main source of income will be your investment income (e.g. interest and dividend income).
Where the audited financial statements are not available, you can refer to the company’s management accounts for the purpose of declaring the revenue amount. Should the revenue amount based on audited financial statements be different from that declared in the ECI Form, and there is no change in your ECI, no revision is needed.
Company needs to submit an ECI to IRAS within 3 months from the end of their financial year and thereafter followed by a Form C-S/ C. The excess tax paid is refunded while the underestimated tax should be paid in full within 1 month of your corporate tax assessment.
HeySara can prepare and file this tax obligation for your company.