ESTIMATED CHARGEABLE INCOME (ECI)
Filing of Estimated Chargeable Income ECI within 3 months of accounting period
Every company carrying on a trade or business has within 3 months after the end the end of its accounting period has to furnish an estimate of its chargeable income (ECI). Even if the company estimates its chargeable income as zero, it still has to file a “Nil” Return.
If you did not furnished the ECI within the stipulated period, the Comptroller may issue a Notice of Assessment based on an estimation of the company’s income. If you do not agree with IRAS’s estimated assessment on the company, the company has to object in writing within 30 days from the date of service of the Notice of Assessment. Otherwise, the estimated assessment will be treated as final even if the Form C submitted subsequently shows a lower taxable amount.
Mode of filing ECI
An ECI can be file through electronic filing or using a paper form. You have a better installments plan if you filed the ECI earlier and through electronic means compared to paper based. The instalments allowed are as follows:
ECI filed and months of installments given
|ECI filed within|| E-filers|| Paper-filers
|1 month from accounting year-end||10||5|
|2 months from accounting year-end||8||4|
|3 months from accounting year-end||6||3|
|After 3 months||No installments||No installments|