If a company with an IRAS tax-return filing waiver starts receiving bank interest, review the waiver promptly. No sales does not necessarily mean no income. Retrieve the waiver letter, identify when interest arose and ask the tax adviser what notification and filing are required. Do not assume a small amount can be ignored without review.
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Check what the waiver actually covers
A waiver is different from deciding internally that the company is dormant. Keep the approval letter and the date from which it applies. Check whether there are outstanding returns or earlier periods that the waiver did not resolve.
What does IRAS say about new income?
IRAS’s dormant-company guidance requires notification within one month when a company recommences business or starts earning or receiving income after a waiver. Its current page gives the notification route and addresses one-off income separately. Interest income can affect whether a company is regarded as dormant for the relevant assessment.
Example: an old deposit pays interest automatically
The company stopped trading but retained a bank deposit. Interest is credited without a director making a new investment decision. That automatic credit is still a transaction requiring attention. Obtain the statement and determine the income date instead of relying on the absence of customer invoices.
Prepare a short chronology for the adviser
- The company’s cessation date and financial year end.
- The waiver approval and effective date.
- Bank statements showing the principal and interest.
- Other investment or income records.
- Earlier tax returns and any outstanding notices.
- Whether the income is recurring or genuinely one-off.
Explain what the company actually intends to do next. Repeated interest credits and a single exceptional receipt may require different communications with IRAS.
A one-off receipt still needs a considered response
IRAS explains that where income is one-off and the company remains dormant, it may submit an explanatory letter with financial statements and a tax computation for the relevant year. Have the adviser check whether that route fits the facts. Do not self-approve continued waiver treatment or suppress the income.
Keep ACRA and GST questions separate
An IRAS income-tax waiver does not settle all company-law or GST obligations. Update the compliance calendar using the actual response and filing position. Retain the submission acknowledgement and outcome rather than treating an enquiry as approval.
Does a lack of invoices prove the waiver still applies?
No. Review bank interest and other income, not just trading activity.
Should we close the bank account before asking for advice?
Preserve statements and assess the company’s needs first. Closing an account does not erase income already received.
Related guidance
ACRA and IRAS dormancy distinctions; bank charges in a company with no sales; records dormant companies must maintain.
Discuss your next step
Our tax advisers can review the waiver, income chronology and appropriate IRAS notification or return. Email [email protected] or WhatsApp +65 8501 7133. Legal advice, where needed, is provided by advisers from associated law firms.