Estimated Chargeable Income (ECI) — the income of a company after deducting tax-allowable expenses. ECI is a necessary piece of data a company submits to IRAS within 3 months from the end of their financial year. It is then compared to the chargeable income stated in Form C-S/ C and either the excess tax is refunded, or you must pay the remaining tax within 1 month. It is your Singapore accounting and bookkeeping services provider who is in charge of ECI.

How to calculate ECI: Step 1 | Net profit before tax example

Line S$
Sales S$ 100,000
Less: Cost of goods sold S$(40,000)
Rental Income S$ 2,000
Gross Profit S$ 60,000
Advertisement S$(10,000)
Depreciation S$(500)
Directors’ fees S$(12,000)
Printing and Stationery S$(100)
Property Tax (rental property) S$(400)
Salaries S$(26,000)
Secretarial Fees S$(300)
Water & Electricity S$(1,000)
Net Profit before Tax S$ 11,700

How to calculate ECI: Step 2 | ECI example

Let's assume your company bought S$500 worth of desks for the office and a S$1,500 laptop.

Line S$
Net Profit before Tax S$ 11,700
Rental Income S$ 2,000
Depreciation S$ 500
Property Tax (rental property) S$ 400
Adjusted profit before Capital Allowances S$ 10,600
100% Write-Off for Low-Value Asset - desks S$ 500
100% Write-Off in One Year for Laptop S$(1,500)
Adjusted profit after Capital Allowances S$ 8,600
Rental income (net of Property Tax for rental income) S$ 1,600
Estimated Chargeable Income (before exempt amount) S$ 10,200
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