Corporate Tax Filing (Include preparation of ECI, tax computation and form C/C-S filling with IRAS)
Estimated Chargeable Income (ECI)
Estimated Chargeable Income (ECI), is an estimate of a company’s chargeable income for a Year of Assessment (YA). All companies, including new companies are required to file ECI within 3 months from the end of their financial year except for companies that qualify for the administrative concession and those that are specifically not required to file.
Where audited accounts are unavailable, a company may refer to its management accounts to declare their revenue amount. If the revenue amount based on audited accounts turns out to be different from that that is declared in the ECI form and there is no change in your ECI, you are not required to revise the revenue figure.
Companies that are exempted from filing their ECI would need to fulfil the following conditions:
Companies that are exempted from filing their ECI would need to fulfil the following conditions:
CRITERIA FOR ECI WAIVER
Annual revenue is not more than $1 million for the financial year; and ECI is NIL for the YA
In or before Jun 2018
In or before Jul 2018
Annual revenue is not more than $5 million for the financial year; and ECI is NIL for the YA
Form C-S
In addition, certain entities such as real estate investment trusts (“REITs”), foreign universities, designated unit trusts etc. are not required to file ECI.
IRAS provides flexible payment options for companies that submit early their ECI statements. They can pay their tax in instalments. The earlier the ECI statement is submitted, the higher the number of payment instalments are bestowed.
Failure to comply with filing of ECI
After the three-month grace period has elapsed and the company failed to comply with such requirement, IRAS shall issue a Notice of Assessment (NOA) based on its estimation of that particular company’s income.
The company then has one month from the date of IRAS’ NOA to submit its written objection should it not agree with IRAS’ estimated assessment.
Otherwise, the NOA is recognized as final and the same holds true despite differences on the information of revenues declared on it is Form C and the accounts submitted subsequently.
Corporate Income Tax – Form C or Form C-S
Depending on your company type, your company will need to submit either a Form C or Form C-S to IRAS.
The table below provides a quick overview of the differences between both Forms:
Form C
Qualifying small companies
All other companies
Annual revenue of S$ 5 million and below
Will have to declare essential tax and financial information and attach the following:
Incorporated in Singapore
Financial information
Derives only income taxable at 17%
Tax computation
Does not claim tax relief for Group Relief, Investment Allowance, Carry-back of current year capital allowances / losses, foreign tax credit and tax deducted at source
Relevant supporting documents such as audited or unaudited accounts
Will have to declare essential tax and financial information
E-filing option not available
E-filing option available
Paper submission by 30 November
Paper submission by 30 November E-filing submission by 15 December
Ideally, qualifying companies would opt for the e-filing option for the Form C-S, which has built-in formulas to assist companies in avoiding calculation errors. In addition, companies that e-file would have a longer deadline within which to comply.
At Ceres Pacific, we recognize that many companies might have overlook or fail to comply with corporate income tax regulations and datelines. This in turn incur hefty penalties IRAS.
To ease your worry and burden for tax compliance, you can appoint us as your tax agent to act on your behalf, prepare the necessary tax computations and schedules to submit on behalf to Comptroller before the stipulated datelines.
Corporate Tax Filing (Include preparation of ECI, tax computation and form C/C-S filling with IRAS)