IRAS – Record Keeping Requirements
According to IRAS, company is required to maintain accurate financial records and securely store all related documents, including source documents, accounting records, schedules, and bank statements, for a minimum of 5 years from the corresponding Year of Assessment (YA).
Records That Company Must Keep
Effective record keeping is essential for running a successful business. Company that implements strong record-keeping practices can:
Company must securely retain all records, including source documents and bank statements, and be able to provide a clear explanation of all transactions related to income, business expenses, and purchases. Additionally, accounting records and schedules summarizing business transactions should be kept in a systematic and organized manner.
How to Ensure Proper Record Keeping
Use Accounting Software
Company is advised to use accounting software listed on IRAS’ Accounting Software Register Plus (ASR+). These tools assist in managing daily business operations and transactions digitally, while also ensuring seamless compliance with tax obligations.
IRAS Record Keeping Guides
Company is advised to refer IRAS Record Keeping Checklist to ensure that the company has maintained the required records. In addition, Company may also use the Self-Assessment Toolkit to review the company’s record keeping standards and identify areas for improvement.
Required Record Keeping Duration
Company must retain its records for at least 5 years from the relevant YA.
Struck Off Companies
If the company has been struck off and dissolved, an officer who held a position in the company immediately prior to its dissolution is responsible for ensuring that all company books and records are retained for at least 5 years from the date of dissolution.
Wound Up Companies
If the company is undergoing liquidation, the liquidator is responsible for ensuring that all company books and records are kept for at least 5 years from the date of the company’s dissolution.
Non-Compliance With Record Keeping Requirements
Non-compliance with record-keeping requirements constitutes an offence under the Income Tax Act 1947 and the Goods and Services Tax Act 1993. IRAS may respond by:
