On 4 Jul 2014, the IRAS has updated the waiver of requirement to file Estimated Chargeable Income (“ECI“).
The IRAS has clarified that even with the ECI Waiver administrative concession, IRAS may raise estimated assessments on companies which they think may not have met the ECI Waiver conditions. IRAS will base on information available to us (e.g. past years’ tax filings, GST returns, rental records) to identify such companies.
In rare situations, IRAS may also raise estimated assessments on companies. This occurs when the information available to us indicates that the company is unlikely to have met the ECI Waiver conditions.
If your company has met the ECI Waiver conditions but was issued
with an estimated assessment by IRAS, you should write in to inform IRAS before the payment due date of the estimated tax to confirm that your company’s annual revenue does not exceed $1 million and the ECI is nil for the said Year of Assessment. IRAS will amend the assessment accordingly so that enforcement action will not be taken for non-payment of estimated taxes.
If you have any questions regarding the above, please contact us at firstname.lastname@example.org