Here is a scenario we see constantly at Excellence Singapore:

A business owner incorporates a company but pauses operations. No sales, no invoices, no staff. The bank account balance sits at $0. When tax season arrives, they think: “I made no money, so obviously I don’t need to file anything with IRAS.”

Six months later, they receive a Composition Fine or a Court Summons for failing to file their Corporate Income Tax Return.

This is the “Zero Income” Myth. In Singapore, tax filing is based on compliance, not just profit. Until you officially tell IRAS you are dormant and get approved, the government treats you as an active company that simply forgot to file.

Here is what you need to know to avoid unnecessary fines in 2026.

Flowchart showing the decision process for Dormant Company Tax Filing in Singapore. Start: Did you earn income? No. -> Did you apply for IRAS Waiver? No -> YOU MUST FILE FORM C-S.

1. The Confusion: ACRA “Dormant” vs. IRAS “Dormant”

First, you must understand that “Dormant” means two different things to the two main regulators.

  • ACRA (The Company Registrar): Considers you dormant if you have no accounting transactions (no money in/out). If you meet this, you are exempt from auditing and can file a simplified Annual Return.
  • IRAS (The Tax Authority): Considers you dormant only if you have no income and no business activity.

The Trap: You might be “Dormant” in ACRA’s eyes, but if you haven’t notified IRAS, IRAS still expects a tax return. They do not talk to each other automatically regarding your status.

2. ECI vs. Form C-S: The Dangerous Distinction

This is where 90% of business owners get confused.

Estimated Chargeable Income (ECI): If your company has Zero Income and Revenue under S$5 Million, you are indeed exempt from filing ECI. You don’t need to do anything for this specific filing.

Form C-S (The Annual Tax Return): You are NOT exempt from filing Form C-S automatically. Even if your income is $0.00, you must log in to myTax Portal and file a “NIL” Form C-S by 30 November.

The only exception: You must formally apply for a Waiver to Submit Income Tax Return.

3. The Solution: Applying for the IRAS Waiver

If your company is going to be inactive for a long time, don’t just file “NIL” returns every year. Apply for the Waiver.

Once granted, this waiver means you do not need to file Form C-S for future years until you restart business. To qualify, you must:

  1. Have filed all outstanding tax returns (Form C-S) up to the date of cessation.
  2. Have no investments generating income (e.g., no dividends from shares).
  3. De-register for GST (if you were previously registered).

Need help clearing your backlog so you can apply for a waiver? Our Taxation Services can handle the “catch-up” filings and the waiver application for you.

4. The Consequence of Doing Nothing

In 2026, IRAS systems are automated. If a “NIL” return or a Waiver is not in the system by the deadline, a penalty is auto-generated.

  • Late Filing Fee: Starts at S$200 and can go up to S$1,000.
  • Court Summons: If you ignore the fine, the director (you) will be summoned to court.

5. What If I Want to Restart?

If you have a waiver and you decide to “wake up” the company (e.g., you sign a new contract), you must notify IRAS within one month of generating income. Failing to notify them is an offence.

Conclusion: “Dormant” is an Active Status

You cannot just “ghost” the government. You must actively manage your dormancy.

If you are holding onto a shelf company or a paused business, let us handle the compliance. We ensure your Company Secretary records match your tax filings, keeping you safe from both ACRA and IRAS.

Contact Excellence Singapore to regularize your dormant company today.