ECI

    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.

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

    LineS$
    SalesS$ 100,000
    Less: Cost of goods soldS$(40,000)
    Rental IncomeS$ 2,000
    Gross ProfitS$ 60,000
    AdvertisementS$(10,000)
    DepreciationS$(500)
    Directors’ feesS$(12,000)
    Printing and StationeryS$(100)
    Property Tax (rental property)S$(400)
    SalariesS$(26,000)
    Secretarial FeesS$(300)
    Water & ElectricityS$(1,000)
    Net Profit before TaxS$ 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.

    LineS$
    Net Profit before TaxS$ 11,700
    Rental IncomeS$(2,000)
    DepreciationS$ 500
    Property Tax (rental property)S$ 400
    Adjusted profit before Capital AllowancesS$ 10,600
    100% Write-Off for Low-Value Asset - desksS$(500)
    100% Write-Off in One Year for LaptopS$(1,500)
    Adjusted profit after Capital AllowancesS$ 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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