Income Tax – Revised Wavier for ECI Filing Requiements


IRAS has revised the waiver for companies to file its annual estimated chargeable income in order to reduce the compliance cost of doing businesses in Singapore.

Currently, the criteria for ECI waiver are as follows:

  • Annual revenue is not more than $1 million for the financial year; and
  • ECI before exempt amount is NIL for the relevant Year of Assessment.

For companies whose financial year ending in or after July 2017, the revenue requirement will be increased to $5 million.  For this purpose, revenue refers to a company’s main source of income and excludes separate source income such as interest, dividend, and rental, which do not arise from its principal activity.

Please also note that the following entities do not need to file ECI:

  • Foreign shipowners or charterers for whom the Shipping Return  has been or would be submitted by the local shipping agent;
  • Foreign universities;
  • Designated unit trusts and approved CPF unit trusts
  • Real estate investment trusts that have been granted the tax treatment under Section 43(2) of the Income Tax Act; and
  • Any other specific case granted waiver to furnish ECI by IRAS, e.g. via an advance ruling issued.

If you have any questions, please contact support@whm-consulting.com.

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