Tax Filing for Chargeable Income (CI) in Singapore Made Easy

There is no single, straightforward formula for calculating estimated chargeable income (ECI) in Singapore. Instead, you need to estimate your company’s total income and deductible expenses for the upcoming year. Previous financial statements can serve as a useful reference, but it’s essential to make adjustments based on expected changes in your business activities. If you have doubts about the computation or your business involves complex financial transactions, consider availing professional tax services, such as those provided by Lanturn, for accurate ECI estimation and peace of mind.

Assessable income is the total income of an individual or company after deducting allowable expenses and approved donations. Estimated chargeable income (ECI) is an estimate of a company’s taxable profits for a Year of Assessment (YA).

The key differences are that assessable income is the total income before deductions, used to determine tax liability, while ECI is a company’s estimate of taxable profits for a specific Year of Assessment, serving as a basis for corporate income tax calculation.

All companies in Singapore, regardless of ownership (local or foreign), are required to file ECI unless they meet specific exemptions or conditions. ECI must be filed within three months from the end of a company’s financial YA, regardless of its ownership.

It is advisable to seek tax services, like those provided by Lanturn, to determine if your company meets the exemptions or conditions for a waiver from ECI filing. Professional tax services can assist in assessing your company’s specific situation and ensuring compliance with tax regulations.

In Singapore, companies should file their Estimated Chargeable Income (ECI) within three months from the end of their financial Year of Assessment (YA). This means that you have up to three months after the end of your company’s financial year to submit the ECI form to the Inland Revenue Authority of Singapore (IRAS). It’s important to meet this deadline to ensure compliance with Singapore’s tax regulations.

You can consider availing of tax services from qualified service providers like Lanturn have experience in finding the best tax deductions or tax incentives for your company.