Estimated Chargeable Income
Why do I have to file estimated chargeable income (ECI) electronicly? Today, FOZL has found relevant content from the Singapore Inland Revenue Authority to share!
Advantages of e-Filing :
1. Companies that e-File their ECI enjoy instant acknowledgement upon successful e-Filing.
2. More installments
Only companies that are on GIRO qualify for instalment payment. Companies that do not have an existing GIRO arrangement for Corporate Tax are encouraged to apply for GIRO3 weeksBefore submitting the estimated chargeable income.
If the GIRO application is not approved before the payment due date, the company will not be eligible for the installment payment . The company is required to pay the full amount of tax before the payment due date.
|Number of installments allowed |
|Type of Submission||Electronic Submission||Paper Submission|
|1 month from the Financial Year End||10||5|
|2 months from the Financial Year End||8||4|
|3 months from the Financial Year End||6||3|
|Three months after the Financial Year End||No installments allowed|
Based on the application date of ECI, the previous instalments can be combined into first GIRO deduction.
1. Electronic applications need to be successfully declared before the 26th of each month, in order to enjoy the maximum number of installment stakes.
2. Paper applications must be successfully declared before the 24th of each month, in order to enjoy the maximum number of installment stakes.
Example 1: Number of installments available to companies that end the financial year in December
|E-application||Number of installments provided||Paper application||Number of installments provided|
|26 January||10||24 January||5|
|26 February||8||24 February||4|
|26 March||6||24 March||3|
|After 26 March||No installments allowed||After 24 March||No installments allowed|
Example 2: The first GIRO payment date is determined on the date of ECI, the taxable income statement for the declared estimate
Company A’s fiscal year ends in December and ECI’s electronic application is completed in January, and the company will receive 10 installments and a tax payable of S$10,000.
|Application date||Between January 1 and 20||Between 21 and 26 January|
|First GIRO Deduction||6 February||6 March|
|Deductions||1000 S$1000||2000 S$2000|
|Subsequent deductions|| |
Thereafter, from March to November, S$1,000 will be deducted from the 6th of each month.
There is no GIRO deduction on February 6. The installments for February and March will be deducted on March 6.
Thereafter, from April to November, S$1,000 will be deducted from the 6th of each month.
Obtaining tax notice and paying estimated taxes
The Company will receive an Notice of Assessment (NOA) after the Singapore Inland Revenue Authority has processed the Estimated Taxable Income Form ECI. The notice is a formal notice of the amount of tax payable. You can also view NOA at mytax.iras.gov.sg. If your company does not have to pay the ECI amount, no NOA will be issued.
Unless the company pays through a circular payment method (GIRO),Tax must be paid within one month of the date of receipt of the NOA, NOA file includes information on various payment methods.
There are two ways to pay taxes:
1. Payment by GIRO
Companies that wish to pay taxes in installments must apply and register gIRO by submitting a GIRO application
Other electronic model payments
Payment can be made through online banking, telephone banking, NETS, etc.
Singapore-registered company GIRO installment plan
As long as you are a company registered in Singapore, you are eligible for GIRO installments.