A dormant company is one that does not carry on business and had no income for the whole of the basis period.
A dormant company is still required to submit its income tax return unless the company has been granted waiver of income tax return submission. To obtain a waiver of income tax return submission, the company needs to first satisfy the qualifying conditions which are:
- It must be dormant and has submitted either its Form C-S or Form C, accounts and tax computations up to the date of cessation of business;
- It must not own any investments (e.g. shares, real properties, fixed deposits). If the company owns investments, it must not derive any income from these investments;
- It must have been de-registered for Goods and Services Tax (GST) purposes prior to this application if it had previously been a GST-registered company; and
- It must not have the intention to recommence business within the next 2 years.
A dormant company can apply for the above waiver either via e-application or hardcopy application (“Application for Waiver of Income Tax Return (Form C-S/ C) Submission by a Dormant Company”), which is available on IRAS’ website. The company will be notified of the outcome of the application in writing at the company’s registered address within two months from the date IRAS receives the waiver application.
If the dormant company recommences business or starts to receive any income, it would need to notify IRAS within one month from the date the income is earned or received by completing the form “Request for Income Tax Return (Form C-S/ C) Filing Package and Notification of New Financial Year End”
You may download a copy of the “Application for Waiver of Income Tax Return (Form C-S/ C) Submission by a Dormant Company” and “Request for Income Tax Return (Form C-S/ C) Filing Package and Notification of New Financial Year End” on IRAS’ website.