Corporate Income Tax Filing for 2024: What You Need to Know

What is Estimated Chargeable Income (ECI)?

The Estimated Chargeable Income (ECI) is an estimate of your company’s chargeable income for a given Year of Assessment (YA). Chargeable income refers to the portion of your company’s income that is subject to Singapore corporate tax, after deducting allowable expenses, tax exemptions, and any applicable rebates.

Filing the ECI is mandatory for all companies, regardless of whether the company earned any income during the financial year or is expecting losses. The ECI must be submitted within three months from the end of your company’s financial year. For instance, if your financial year ended on June 30, 2024, your ECI filing is due by September 30, 2024.

Failure to file your ECI on time can result in penalties from the Inland Revenue Authority of Singapore (IRAS), which may include fines or additional tax liabilities.

How to File ECI in Singapore

Filing the ECI is a straightforward process and can be completed online through the myTax Portal on the IRAS website. To help you get started, here are the steps for filing your company’s ECI:

1. Log into myTax Portal: Use your CorpPass credentials to access the portal.

2. Select the ‘File ECI’ option: Under the Corporate Tax section, select “File ECI” to begin the process.

3. Provide the necessary details: Enter your company’s estimated chargeable income, revenue, and other necessary details. If your company’s annual revenue is less than SGD 5 million and has zero chargeable income, you may not need to file the ECI.

4. Submit the ECI: After reviewing your information, submit the ECI filing to IRAS.

It’s important to note that even if your company is expecting losses or has no chargeable income, you must still file a ‘nil’ ECI to comply with regulations.

Understanding Corporate Income Tax (CIT) in Singapore

Singapore’s corporate tax system is known for its business-friendly policies. The corporate income tax (CIT) rate in Singapore is a flat 17% of chargeable income. However, several tax exemptions, rebates, and reliefs can significantly reduce your company’s tax burden.

For example, new startups can benefit from the Start-up Tax Exemption (SUTE) scheme, which provides exemptions on the first SGD 200,000 of chargeable income. Beyond the startup phase, companies can take advantage of the Partial Tax Exemption (PTE) scheme, which offers exemptions on the first SGD 200,000 of chargeable income for all qualifying companies.

Here’s a breakdown of the corporate tax structure for the Year of Assessment 2024:

• Corporate tax rate: 17% flat rate on chargeable income.

• Start-up Tax Exemption (SUTE): 75% exemption on the first SGD 100,000 of normal chargeable income and 50% exemption on the next SGD 100,000 for qualifying new companies.

• Partial Tax Exemption (PTE): 75% exemption on the first SGD 10,000 of normal chargeable income and 50% exemption on the next SGD 190,000 for all companies.

CIT Rebates and Reliefs

In addition to tax exemptions, Singapore also provides CIT rebates and reliefs that can further reduce the tax payable by companies. These rebates are designed to support businesses, especially during economic downturns or times of uncertainty.

For the Year of Assessment 2024, companies may be eligible for a CIT rebate of up to 20% of the tax payable, capped at SGD 15,000. This rebate is automatically applied when companies file their corporate tax Singapore returns and is aimed at helping businesses weather challenging economic conditions.

Additionally, Singapore offers a wide range of tax reliefs and incentives to encourage business innovation, research and development (R&D), and international expansion. For instance, the Productivity and Innovation Credit (PIC) and the Research and Development (R&D) Tax Incentive are just two examples of schemes that provide significant tax relief to businesses engaging in these activities.

Corporate Tax Deadlines in Singapore

Understanding and meeting corporate tax deadlines is essential for staying compliant and avoiding penalties. Here are the key tax deadlines you need to be aware of:

• Estimated Chargeable Income (ECI): Must be filed within three months of the company’s financial year-end.

• Annual Corporate Income Tax Return (Form C-S or C): The Form C-S or C must be filed with IRAS by November 30 each year for the Year of Assessment (YA). This form reports your company’s actual chargeable income and tax payable.

If your company’s financial year ends in June 2024, the deadline for filing the ECI is September 30, 2024, while the deadline for the annual corporate tax return is November 30, 2024.

Consequences of Not Filing ECI or Corporate Tax on Time

Late or non-filing of your company’s ECI or corporate tax return can result in penalties from IRAS. Here’s what you could face if you miss a deadline:

• Late filing fees: IRAS may impose a late filing fee of up to SGD 1,000 for each missed deadline.

• Additional tax: IRAS may also impose additional tax on companies that fail to file their ECI or tax returns within the stipulated time frame. This additional tax can be up to two times the tax amount that is due.

• Court summons: In extreme cases, IRAS may issue a court summons for companies that repeatedly fail to comply with filing obligations, leading to further legal consequences.

How ATHR Can Help You

Managing corporate income tax filing and staying compliant with Singapore’s stringent tax regulations can be overwhelming. Whether you’re a startup or an established company, meeting these deadlines and ensuring the accuracy of your tax submissions is crucial to avoiding penalties. Book a call today and let ATHR handle your Singapore company's corporate tax needs, from filing your ECI on time to maximizing the benefits of available tax exemptions and rebates. With our expert accounting team, you can focus on growing your business while we take care of your financial and tax obligations.