If your office landlord charges GST on a payment described as a refundable security deposit, check what the money actually covers before paying or claiming input tax. Genuine security held for refund differs from advance rent. The lease, invoice and actual use of the money matter more than the short payment label in a bank reference.
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Read the lease and payment schedule together
Identify whether the deposit is refundable, when it can be applied and whether any portion is immediately used to pay rent. Separate security, rent, service charges and other amounts.
IRAS’s deposit guidance says no GST needs to be accounted for on a rental security deposit refundable at the end of the lease. If it is used to offset rent, the relevant GST treatment changes.
Example: one invoice combines rent and security
The landlord invoices the first month’s rent and two months’ refundable security together. Ask for a clear breakdown. Do not claim tax across the entire total simply because one GST figure was generated by the billing system.
Build a deposit record from the start
- Tenant and landlord legal identities.
- Lease and relevant deposit clauses.
- Payment breakdown and supplier invoice.
- Evidence of receipt and deposit balance.
- Any later deduction, offset or refund.
Make sure the named tenant is the company intended to use the premises. A founder’s personal payment should be reconciled without pretending the contract names a different tenant.
Review later changes separately
If the landlord applies security to rent or retains amounts for damage, obtain the actual explanation and documents. Do not assume that all deductions have identical GST treatment.
A forfeiture on early termination raises its own analysis under the guidance. Give the tax adviser the termination terms and real facts rather than classifying it automatically from the word “forfeit”.
Keep accounting and tax controls aligned
A refundable balance should remain identifiable in the records. Ask the accountant to distinguish it from rent expense and track the company’s entitlement.
Where the invoice or tax treatment appears wrong, seek a proper supplier correction and advice on the claim. Preserve the original. Do not add a GST amount to a receipt simply to recover more input tax.
Does calling advance rent a deposit remove GST?
No. Assess the real payment and applicable treatment.
Should the deposit be forgotten once the office opens?
No. Reconcile it through any use, deduction and final refund.
Related guidance
GST on deposits and refunds; supplier and invoice checks; premises and operating-company handovers.
Get help with your records and next steps
Our accounting team and tax advisers can review rental-deposit records and the GST treatment of your office payments. Email [email protected] or WhatsApp +65 8501 7133. Where legal advice is needed, RCS can coordinate assistance through advisers from associated law firms.