When security deposits are required
You may be requested to provide a security deposit when registering for GST when 1 or more of the directors or partners of the business:
• Has outstanding income tax/ penalties; or
• Has been/ is a director/ partner/ sole proprietor of other business(es) which has outstanding tax/penalties/returns.
The security deposit may also be imposed for any other reasons that the Comptroller of GST 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
I received a letter informing me that a security deposit must be provided for GST registration. I am 1 of the directors but I do not owe IRAS any tax. Why do I need to provide a security deposit?
A possible reason is that at least 1 or more of the directors or partners of the business:
- Has outstanding income tax/penalties; or
- Has been/ is a director / partner/ sole proprietor of other business(es) which has outstanding tax/penalties/returns.
However, we are precluded under the official secrecy laws from disclosing the identity of person(s) with outstanding tax matters with IRAS.
A security deposit may also be imposed for any other reason that the Comptroller deems fit.