in Nanyang. A new directive from the Tax Office sets a clear line: shutting down businesses but holding assets is not considered a company in hibernation.
If a company goes out of business and has no income, can it be considered a "dormant company"? The latest guidance from the Board of Internal Revenue draws a clear line. Even if a company has no day-to-day business, as long as it still owns stocks, real estate, time deposits or other similar investments, it is not considered a dormant entity; even if it qualifies for a dormant state, it must continue to file tax returns until it is dissolved.