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Q：
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What’s the definition of dormant company?
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A：
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The definition of dormant Company between IRAS (Inland Revenue Authority of Singapore) and ACRA (Accounting and Corporate Regulatory Authority) are different. In some cases, a company that is defined as dormant by IRAS can be considered as active by ACRA.
Dormant Company according to IRAS
IRAS defines a dormant company as a company which has not conducted any business and has not received any income over a 12-month period, even though it may have incurred expenses.
Dormant Company according to ACRA
ACRA defines a company as dormant during a period in which no accounting transaction occurs.
Transactions that will not affect the dormant status of the company:
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Maintenance of a registered office;
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Keeping of registers and books;
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Appointment of an auditor;
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Appointment of a secretary of a company;
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Payment of fees to the Registrar or amount of any fine or default penalty paid to ACRA; and
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A subscriber to the company’s constitution takes shares in the company
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Q：
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If the Company has only other income no revenue can be treated as dormant Company?
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A：
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Under the definition defined by IRAS, if the Company has no revenue but other income, it’s not a dormant company. However it maybe defined as “active” in ACRA’s definition.
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Q：
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Tax filing requirement for dormant company.
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A：
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A dormant company must submit its Income Tax Return unless the company has been granted waiver of Income Tax Return Submission. A dormant company may submit its Income Tax Return by:
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E-Filing via mytax.iras,gov,sg using file Form C-S/C for Dormant Company e-Service. There is no need to submit financial statements to IRAS or;
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Submitting a hard copy of the Income Tax Return (Form C-S/C) The dormant company need only complete Page 1 of Form C-S/C and need not submits its financial statements to IRAS.
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Q：
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How to apply for waiver to submit tax return?
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A：
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The qualifying conditions for the company are:
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It must be dormant and has submitted its Form C-S/C, financial statements and tax computations up to the date of cessation of business;
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It must no town any investments (e.g shares, real properties, fixed deposits). If the company owns investments, it must not derive any income from these investments;
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It must have been de-registered for Good and Services Tax (GST) purposes prior to this application. If it had previously been a GST-registered company; and
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It must not have the intention to recommence business within the next 2 years.
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Q：
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What should we do for recommencing business?
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A：
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Once a dormant company recommences business, or starts to receive any income, the company has to notify IRAS within one month from the date of commencement of business or earnings/receiving the income by writing to IRAS to request for an income Tax Return.
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Subject header: Recommencement of business and request for Income Tax Return;
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Name and Unique Entity Number (UEN) of the company;
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Date of commencement of business in dd/mm/yyyy format;
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Date of receipt of other source(s) of income (e.g. interest, dividend, rent, etc.) in dd/mm/yyyy format; and
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New principal activity and the effective date of change in dd/mm/yyyy format together with a copy of Bizfile extracted ACRA showing the principal activity of the company.
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FAQ
