A dormant company still has separate corporate-registry and tax duties.
ACRA generally still requires an annual return, while IRAS requires the corporate tax return by 30 November unless it has granted a waiver.
ACRA and IRAS use different tests
ACRA focuses on significant accounting transactions and statutory financial reporting. IRAS defines a dormant company as one with no business and no income for the whole basis period. Run both tests; never copy a dormant answer from one agency into the other. (ACRA financial-statement requirements)
ACRA states all companies, including dormant companies, must file annual returns. Exemption from preparing or filing financial statements is a different question. Keep the annual-return deadline on the compliance calendar.
| Situation | What changes |
|---|---|
| No significant accounting transactions for ACRA purposes | Test dormant relevant company exemption |
| No business and no income for the whole IRAS basis period | Use the dormant-company tax route |
| Investments exist but earn no income | Check the stricter IRAS waiver conditions |
| Business or income restarts | Notify IRAS and resume the correct return |
The ACRA asset ceiling matters
A dormant relevant company exemption includes a total-assets ceiling of S$500,000 and excludes listed companies and their subsidiaries. Document the highest asset value during the financial year, not only the year-end balance. (IRAS dormant companies)
IRAS requires a return by 30 November unless a waiver has been granted. A dormant company can use the simplified filing route. Check the myTax Portal status rather than assuming a past quiet year created a waiver.
Example: A company owns a fixed deposit but receives interest. It may look inactive operationally, yet IRAS says income means it is not dormant for that Year of Assessment. The director should use the ordinary corporate return route rather than the dormant form.
A waiver has four practical gates
IRAS requires filings up to cessation, no disqualifying investment income, GST deregistration where relevant, and no intention to restart within two years. Create a waiver evidence file before applying.
After a waiver, the company must notify IRAS within one month of recommencing business or receiving income. Define an internal trigger for invoices, interest, rent or active business sourcing.
