TaxSavvySG

ECI with start-up exemption

How do I compute ECI with start-up exemption?

The situation

Start-up exemption: 75% of first S$100,000 and 50% of next S$100,000 are exempt.

The law

  • Income Tax Act 1947, start-up tax exemption: First 3 YAs: 75% of first S$100,000 and 50% of next S$100,000 exempt, for qualifying new companies
  • Income Tax Act 1947: Estimated Chargeable Income: ECI filed within 3 months after financial year end; waiver if revenue up to S$5 million and ECI nil

What it means for you

On S$120,000: exempt 75,000 + 10,000 = 85,000; chargeable 35,000; tax 17% = S$5,950 before rebate. Report the figure after exemption as instructed in the form.

What to do

  1. Compute taxable profit.
  2. Apply exemption.
  3. Compute tax.
  4. File ECI.

We can do this for youEstimated Chargeable Income (ECI) filing: SGD 200

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