ECI (Estimated Chargeable Income) is a foreign concept to many businessmen who are not familiar with Singapore’s accounting terms. Many entrepreneurs are unsure as to why and when they have to file the ECI. In layman terms, the ECI is the company’s annual turnover minus expenses for the Year of Assessment (YA). In this blog, we will demystify the ECI and make it as easy to understand as possible.
1. With whom and when must I file the ECI?
First and foremost, you must file the ECI with IRAS, Singapore’s tax authority, within 3 months of the end of your company’s financial year (FYE).
For example, if your FYE is 31 December 2018, you must file your ECI by 31 March 2019.
2. Why you should file your ECI
Filing the ECI in a timely manner is one of the annual corporate compliance requirements in Singapore.
Your ECI submission plays an important role in the larger scheme of things as it helps policymakers have a sense of how businesses and various industries are doing. In turn, this information helps them adjust policies, which in turn, could benefit your firm and industry.
Read more about ECI (Estimated Chargeable Income) at Rikvin.com.
