Companies Which Do Not Need To File ECI to IRAS
“ECI” stands for “Estimated Chargeable Income”.
I have received some enquiries lately from prospect clients asking me if they need to file ECI within 3 months after their coming December year end closing.
I replied – “it depends…”
Let me try to explain here…
Companies that qualify for the administrative concession for a particular financial year do not need to file ECI for that relevant Year of Assessment (YA) if its:
1. annual revenue < $5 million for the financial year; and
2. ECI is NIL for the YA. The ECI should be the amount before deducting the exempt amount under the partial tax exemption schemes or the tax exemption scheme for new start-up companies
Please note the waiver condition is “and” !
Companies are required to determine for themselves whether they meet the conditions of the administrative concession.
If they meet the conditions for the administrative concession, they do not need to file their ECI for that particular YA. There is no need to inform IRAS.
That is to say, if they do not meet any of the conditions, they will need to file their ECI for that particular YA.
The following 5 entities do not need to file ECI to IRAS too :
1. Foreign ship owners or charterers
2. Foreign universities
3. Designated unit trusts & approved CPF unit trusts
4. Real estate investment trusts that have been granted the tax treatment under Section 43(2) of the Income Tax Act; &
5. Any other specific case granted waiver to furnish ECI by IRAS, e.g. via an advance ruling issued.
Hope above helps.
Call me if in doubt, don’t guess.
Will be glad to help.
If you need help, feel free to contact us at :
(M) +65 90880669
