Security Deposit

When registering for GST, you may be required to provide a security deposit.

When Security Deposits Are Required

You may be required to provide a security deposit when registering for GST when at least one of the directors or partners of the business:

  • Has outstanding income tax/penalties; or
  • Has been/are a director / partner/ sole proprietor of other business(es) which has outstanding tax/penalties/returns.

Security deposit may also be imposed for any other reasons that the Comptroller deems fit.

Amount and Form of Security Deposit

We will notify you on the amount of security deposit required upon processing your application for GST registration.

The security deposit must be in the form of a banker's guarantee or insurance bond.

Waiver of Security Deposit

We may waive the requirement of the security deposit if the outstanding issues with us are settled.
  • I received a letter informing me that a security deposit must be provided for GST registration. I am one of the directors but I do not owe IRAS any tax. Why do I need to provide security deposit?

    A possible reason is that at least one of the directors or partners of the business:

    • Has outstanding income tax/penalties; or
    • Has been/are a director / partner/ sole proprietor of other business(es) which has outstanding tax/penalties/returns.

    However, due to official secrecy laws, we are unable to inform you of the details like identity of person owing the tax, nature and quantum of the outstanding tax/penalties owed to us.

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