AsiaBiz Services

What does ECI means?

ECI means Estimated Chargeable Income. It is an estimate of a company’s chargeable income for a Year of Assessment (YA). Part of annual corporate compliance requirements in Singapore is the filing of Estimated Chargeable Income [ECI] with IRAS, the taxing authorities of Singapore, requires every company to submit an ECI for the Year of Assessment within three months after the financial year ends. A company with a zero income will file a ‘NIL’ ECI.

Understanding the Estimated Chargeable Income (ECI)

IRAS defines Estimated Chargeable Income as the appraisement of a company’s chargeable income for Year of Assessment [YA], which is unique of every company. Included in the ECI statement is the company’s revenues, excluding items such as gain on disposal of fixed assets. Thus, should a company be an investment holding company, its principal source of income is the investment income.

Companies have been disclosing revenue data in your Income Tax Return (Form C). From 1 Jan 2009, companies will also be required to declare the revenue amount in the ECI Form. Information on the revenue of businesses is one of the key economic data used for policy-making, as well as for regular assessment of performance and development of industries and businesses. There is also an increasing need for more frequent and timely collation of comprehensive economic data in view of the rapid economic changes in recent years. Instead of imposing additional survey reporting on businesses, it is more efficient and cost effective to collect such economic data through existing channels such as the ECI Form.

Where the audited accounts are not available, you can refer to the company’s management accounts for the purpose of declaring the revenue amount. Should the revenue amount based on audited accounts be different from that declared in the ECI Form, and there is no change in your ECI, you are not required to revise the revenue figure.

Who needs to file?

A company has to furnish Estimated Chargeable Income (ECI) within three months after the end of its financial year end, even if the company estimates its chargeable income as zero, it still has to file a “Nil” ECI return.

Advantage of Filing ECI

IRAS provides flexible payment options for companies that submit early their ECI statements. They can pay their tax in installments. The earlier the ECI statement is submitted, the higher the number of payment installments are bestowed. Companies, e-filing their ECI by 26th of the month immediately after the financial year-end, for example, can pay their taxes in 10 installments. If the ECI is filed on the 26th of the second month after the financial year-end, there are 8 payment installments awarded to that company, and 6 for companies filing their ECI on the 26th of the third month.

Failure to comply with filing of ECI

After the three-month grace period has elapsed and the company failed to comply with such requirement, IRAS shall issue a Notice of Assessment (NOA) based on its estimation of that particular company’s income. The company then has one month from the date of IRAS’ NOA to submit its written objection should it not agree with IRAS’ estimated assessment. Otherwise, the NOA is recognized as final and the same holds true despite differences on the information of revenues declared on it is Form C and the accounts submitted subsequently.

Most private limited companies in Singapore are no longer required to have their companies account audited if they satisfy certain conditions.

Exempt private companies, which have no corporate shareholders and no more than 20 individual shareholders, with turnover of less than S$5 million for the accounting year can file un-audited accounts. Dormant companies are also exempt from submitting audited accounts.

All other companies are required to appoint an auditor within 3 months of incorporation and be prepared to submit audited accounts to ACRA. The accounts must be audited annually.

AsiaBiz provides a full accounts services, drafting of un-audited Financial reports for exempt companies and offering audit service through our associate audit firms. Our audit services include all financial statements designed specifically to comply with ACRA’s and IRAs statutory requirements.

What is XBRL?

eXtensible Business Reporting Language or XBRL is a language for the electronic communication of business and financial data worldwide. XBRL is open-source software that enables the organization and management of financial data for research and analysis. It also facilitates the communication of financial information online and among businesses with significant accuracy and reliability.

Accounting and Corporate Regulatory Authority of Singapore (ACRA) has adopted XBRL as part of its overall strategy to streamline financial reporting and to enable the flow of financial information into the international business community, and thus promoting a pro-enterprise environment.

XBRL Filing Requirements

As of 1 November 2007, all Singapore incorporated companies, which are unlimited or limited by shares, must submit financial statements in XBRL format. Others that are allowed to continue to file financial statements in PDF format are as follows:

1. Companies limited by guarantee will be able to continue filing financial statements in PDF format as tabled at the Annual General Meeting;
2. Companies that are commercial banks, merchant banks, registered insurers and finance institutions as stated in the MAS Financial Institutions Directory;
3. All companies that are permitted by law to prepare in accordance with accounting standards other than Singapore or International Financial Reporting Standards.

Filing Financial Statements in XBRL

There are two options available in preparing financial statements in XBRL.

1. Option A _Full XBRL
2. Option B _Partial XBRL

Option A _Full XBRL

A company filing its Annual Return can prepare the financial statements in full XBRL if the company uses FS Manager to prepare the full set of financial statements for tabling at the Annual General Meeting (AGM); or FS Manager is used to prepare a full set of financial statements identical in content to the full set of financial statements tabled at the AGM.

Option B _Partial XBRL

A company filing its Annual Return can prepare the financial statements using Option B. It must, however, attach a PDF copy of its full set of financial statements as tabled at the AGM. In the case of a private company which has dispensed with holding an AGM, it shall be a copy of its full set of financial statements sent to the shareholders of the company. With Option B, a company must file a minimum of Statement of Financial Position, Statement of Comprehensive Income and information denoted by a red asterisk in FS Manager. If the company presents all items of income and expense in two statements, both Statement of Comprehensive Income and Income Statement must also be filed.

A snapshot of XBRL filing requirements

Statements for Financial Periods Beginning On or After 1 January 2009	Option A Full XBRL	Option B Partial XBRL
Directors’ Report
Statement by Directors
Independent Auditors’ Report	*
Statement of Comprehensive Income (and Income Statement, if the company has presented all items of income and expense in two statements)
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
All Notes to the Financial Statements
Mandatory information denoted by a red asterisk in FS Manager

* Applicable for companies not exempted from audit requirement.

Why Outsource your XBRL Fillings?

XBRL filing can be time-consuming and daunting process for many companies. At AsiaBiz, our professional accounting team can assist companies in preparing their financial statements in XBRL format proficiently and cost effectively.

One of the most important tasks for all businesses is the preparation of payroll and payment of salary. The process can be complicated further and more time-consuming with additional components such as benefits, allowances, deductions, government remittance, etc. It is of no surprise that consequently many SMEs choose to outsource their payroll function to accounting firms to.

AsiaBiz has been providing our clients Payroll Management Service since 1995. Our payroll specialists are well-trained and equipped with the most advanced payroll software system to process even the most complex payroll account.
Our service ensures that the government remittances such as CPF are paid on time, tax filing requirements are adhered to, and the payroll information is kept confidential off site.

How it Works

When you engage AsiaBiz’s Payroll Service, you will be assigned an accounts manager who will work with you personally on your payroll needs.

Based on the information and required documents you submit to us, your personal accounts manager will review and organize the information submitted to create and maintain your payroll ledger. The accounts manager will also, per your instruction, make payments and submit all necessary payroll taxes.

Our Payroll Service includes but not limited to the following accounting functions:

• Salary Calculation based on weekly, bi- weekly or monthly.
• Salary payment to employees by cheque issuance or through bank transfer such as GIRO.
• Central Provident Funds (CPF) registration and timely monthly payment.
• Issuing of IR8A for personal tax including statutory annual returns filing.