All Singapore private limited companies whose financial year ended on 31st December 2013, should file their ECI for the period of 1-Jan-2013 to 31-Dec-2013 before 31st March 2014, to stay compliant with Inland Revenue Authority of Singapore (IRAS).
March 11, 2014 (Newswire) - Estimated chargeable income (ECI) is the estimated amount of a company's chargeable income. The time period for which it is calculated is usually one year. It is mandatory that all companies file their ECI within three months from the end of their financial year.
For example, if a company's financial year ends on 31st December 2013, then the due date of ECI filing ( http://www.sbsgroup.com.sg/singapore-estimated-chargeable-income-eci/ ) is 31st March of the following year. The period covered should be from 1st Jan 2013 to 31st Dec 2013, and the year of assessment for that company would be 2014. In the second case, if a company's financial year ends on 31st March 2014, then the due date for filing ECI is 31st June of the same year. The period covered should be from 1st Apr 2013 to 31st March 2014, and the year of assessment for that company would be 2014.
Companies can file ECI in two ways, that is:
1) By paper filing: Submitting a completed ECI form to IRAS by post or Fax
2) E-filing: via the myTax Portal
"The benefit of e-filing ECI is that you get more number of installments as compared to paper filing. Companies can also get in touch with taxation services providing firms in Singapore for filing their ECI," says SBS Consulting.
There are two instances in which a concession can be given from filing ECI for a particular financial year. This comes into effect from YA 2013, for all the companies with financial year ending Oct 2012 or after. They are:
1) If your ECI* is 'NIL'
2) IF your company's annual revenue is not more than $1 million for the financial year.
*ECI is the amount before deducting the exempt amount under the tax exemption scheme for new start-up companies and the partial tax exemption scheme for other companies.
If a company submits the ECI before the due date, they get an option of paying the taxes in installments. The earlier the submission more is the number of installments they can get.
If the ECI is not filed before the due date, IRAS issues a notice of assessment (NOA). This NOA contains estimated value of the company's income. If the company does not agree with the estimation, then they have one month of time to file the Notice of Objection. In the notice of objection, the company has to mention the reason for not filing the ECI on time, and the revised ECI amount. If this is also not provided, the NOA gets recognized as final.
About SBS Consulting
Since its inception in 2010, SBS Consulting has been serving the Singapore business houses, thereby gaining the reputation as one of the best corporate service firms in the country. Its services include Singapore taxation, accounting services, Singapore audit services, bookkeeping service, and XBRL filing services ( http://www.sbsgroup.com.sg/singapore-xbrl-filing-requirements-with-acra/ ). The firm also specializes in offering company incorporation services, corporate secretarial services, payroll service and immigration and work visa services.