

The Estimated Chargeable Income (ECI) is an estimate of your company’s chargeable income for a given Year of Assessment (YA). Chargeable income refers to the portion of your company’s income that is subject to Singapore corporate tax, after deducting allowable expenses, tax exemptions, and any applicable rebates.
Filing the ECI is mandatory for all companies, regardless of whether the company earned any income during the financial year or is expecting losses. The ECI must be submitted within three months from the end of your company’s financial year. For instance, if your financial year ended on June 30, 2024, your ECI filing is due by September 30, 2024.
Failure to file your ECI on time can result in penalties from the Inland Revenue Authority of Singapore (IRAS), which may include fines or additional tax liabilities.
Filing the ECI is a straightforward process and can be completed online through the myTax Portal on the IRAS website. To help you get started, here are the steps for filing your company’s ECI:
It’s important to note that even if your company is expecting losses or has no chargeable income, you must still file a ‘nil’ ECI to comply with regulations.
Singapore’s corporate tax system is known for its business-friendly policies. The corporate income tax (CIT) rate in Singapore is a flat 17% of chargeable income. However, several tax exemptions, rebates, and reliefs can significantly reduce your company’s tax burden.
For example, new startups can benefit from the Start-up Tax Exemption (SUTE) scheme, which provides exemptions on the first SGD 200,000 of chargeable income. Beyond the startup phase, companies can take advantage of the Partial Tax Exemption (PTE) scheme, which offers exemptions on the first SGD 200,000 of chargeable income for all qualifying companies.
Here’s a breakdown of the corporate tax structure for the Year of Assessment 2024:
In addition to tax exemptions, Singapore also provides CIT rebates and reliefs that can further reduce the tax payable by companies. These rebates are designed to support businesses, especially during economic downturns or times of uncertainty.
For the Year of Assessment 2024, companies may be eligible for a CIT rebate of up to 20% of the tax payable, capped at SGD 15,000. This rebate is automatically applied when companies file their corporate tax Singapore returns and is aimed at helping businesses weather challenging economic conditions.
Additionally, Singapore offers a wide range of tax reliefs and incentives to encourage business innovation, research and development (R&D), and international expansion. For instance, the Productivity and Innovation Credit (PIC) and the Research and Development (R&D) Tax Incentive are just two examples of schemes that provide significant tax relief to businesses engaging in these activities.
Understanding and meeting corporate tax deadlines is essential for staying compliant and avoiding penalties. Here are the key tax deadlines you need to be aware of:
If your company’s financial year ends in June 2024, the deadline for filing the ECI is September 30, 2024, while the deadline for the annual corporate tax return is November 30, 2024.
Late or non-filing of your company’s ECI or corporate tax return can result in penalties from IRAS. Here’s what you could face if you miss a deadline:
Managing corporate income tax filing and staying compliant with Singapore’s stringent tax regulations can be overwhelming. Whether you’re a startup or an established company, meeting these deadlines and ensuring the accuracy of your tax submissions is crucial to avoiding penalties. Book a call today and let ATHR handle your Singapore company's corporate tax needs, from filing your ECI on time to maximizing the benefits of available tax exemptions and rebates. With our expert accounting team, you can focus on growing your business while we take care of your financial and tax obligations.