Understanding Estimated Chargeable Income (ECI) Filing for Singapore Businesses

24 March 2025

Editor: ET

ECI filing is a critical component of corporate tax compliance in Singapore.

For businesses operating in Singapore, Estimated Chargeable Income (ECI) filing is a crucial requirement enforced by the Inland Revenue Authority of Singapore (IRAS). It ensures companies report their estimated taxable profits in a timely manner, facilitating proper tax collection and compliance.

With recent updates from Budget 2025, understanding ECI filing is more important than ever.

Further Reading: Top Reasons to Choose Singapore for Your Business in 2025

What is ECI?

ECI refers to the estimated taxable profits of a company for a given Year of Assessment (YA) after deducting tax-allowable expenses. Filing ECI allows IRAS to assess corporate tax liabilities before final tax returns are submitted.

Key aspects of ECI:

• It provides an early estimate of taxable income before the final tax filing.

• Companies must file ECI within 3 months from the end of their financial year.

• Certain companies may qualify for an ECI filing waiver based on specific criteria.

[Updated!] Corporate Income Tax Rebate for YA 2025

As announced in Budget 2025, a Corporate Income Tax (CIT) Rebate of 50% of the corporate tax payable will be granted for YA 2025. Companies can receive up to $40,000 in CIT rebates.

This rebate is automatically computed in the company’s tax assessment based on the ECI, Form C, Form C-S, or Form C-S (Lite) filed. To maximize benefits, businesses should ensure timely and accurate ECI filing.

Does Your Company Need to File ECI?

Your company is required to file ECI unless it qualifies for a filing waiver or falls under specific exemptions.

Companies Exempted from ECI Filing

A company is not required to file ECI if:

1. Its annual revenue is $5 million or below.

2. Its ECI is NIL, meaning it has no taxable profits after deducting allowable expenses.

However, companies that do not meet these conditions must file their ECI within the stipulated deadline.

Why Timely ECI Filing Matters

• Avoid Late Filing Penalties – Non-compliance may result in fines or enforcement actions by IRAS.

• Facilitate Tax Planning – Early filing allows businesses to plan for corporate tax obligations efficiently.

• Enjoy CIT Rebates – Companies that meet the YA 2025 rebate criteria can significantly reduce their tax burden.

How to File ECI in Singapore

1. Log in to myTax Portal – Businesses must access the IRAS e-filing system for submission.

2. Prepare Financial Information – Ensure your taxable income estimate is accurate.

3. Submit Within 3 Months – ECI must be filed within three months from the financial year-end unless exempted.

Further Reading: Tax Planning Essentials for Singapore Businesses Before IRAS Deadlines

ECI filing is a critical component of corporate tax compliance in Singapore. With the latest updates from Budget 2025, businesses can leverage tax rebates to reduce tax liabilities. To ensure smooth filing and compliance with IRAS regulations, companies should consider engaging professional corporate service providers for expert guidance.