Requirement to Keep Proper Records and Accounts
You should keep proper records and accounts so that the income earned and business expenses claimed can be readily determined. You must be able to support your records and accounts with invoices, receipts, vouchers and other supporting documents.
Estimates and improper records are not acceptable.
Records to Verify Income and Claims for Deduction
Sales/Income
Records include cash register tape, daily sales record book and invoices.
Expenses/Claims
Receipts and daily purchases record book.
You need not submit these records to IRAS unless requested by IRAS. The term 'accounts' refer to the trading and profit and loss accounts as well as the balance sheets.
Requirement to Issue Receipts
You must issue serially printed receipts and keep a duplicate of the receipts if your gross income in any year is:
- More than $18,000 from the sale of goods; or
- More than $12,000 from providing services.
You do not need to issue receipts if you adopt practices that can ensure the completeness and accuracy of the recording of all your sales receipts.
Duration for Records and Accounts Keeping
You are required to retain the accounting records and
supporting documents for five years.
Failure to do so may result in:
(a) Expenses claimed being disallowed; or/and
(b) Penalties
Examples:
| Businesses with December financial year end |
|---|
YA | Records for period | To keep up to |
2014 | 1 Jan 2013 to 31 Dec 2013 | 31 Dec 2018 |
| 2018 | 1 Jan 2017 to 31 Dec 2017 | 31 Dec 2022 |
Businesses with non-December financial year end, e.g. Jun, Sep |
|---|
YA | Records for period | To keep up to |
2014 | 1 Oct 2012 to 30 Sep 2013 | 31 Dec 2018 |
| 2018 | 1 Oct 2016 to 30 Sep 2017 | 31 Dec 2022 |
Where a Limited Liability
Partnership (LLP) has been struck off and dissolved, the partners of the LLP
immediately before the LLP was dissolved must ensure that all books and papers
of the LLP are retained for at least five years after the dissolution of the
LLP.
Where an LLP is being wound
up, the liquidator of the LLP must ensure that all the books and papers of the LLP
are retained for at least five years (instead of two years previously) from the
date of dissolution of the LLP.
Financial Accounts in Other Currencies
Guides on Record Keeping
Please refer to our e-learning video to have an overview of record-keeping requirements for Income Tax and GST purposes.
GST-registered Businesses
For GST-registered businesses, please refer to the Guide "Record Keeping Guide for GST-registered Businesses (PDF, 278KB)" for the record keeping requirements for both Income Tax and GST purposes. The guide also covers requirements for keeping business records in electronic media and imaging systems.
Non-GST Registered Businesses
For Non-GST registered businesses, please refer to the Guide "Record Keeping Guide for Non GST-registered Businesses (PDF, 334KB)" for the record keeping requirements for Income Tax purposes. The guide also covers requirements for keeping business records in electronic media and imaging systems.
Non-GST Registered Small Businesses
IRAS recognises that small businesses have simpler business and tax matters. Small businesses that meet the qualifying conditions can adopt the " Simplified Record Keeping Requirements (PDF, 500KB)" from 1 Jan 2014. Please refer to the Guide "Simplified Record Keeping Requirements for Small Businesses"
Please refer to the Record Keeping Checklist (PDF, 64KB), which provides a summary of the different types of records required.
Record Keeping Self-Assessment Toolkit
IRAS has created a self-assessment toolkit to help businesses perform a self-review of their existing record keeping standards and to better understand the possible areas for improvement.
For Non-GST registered businesses, please download the toolkit (XLSX, 30KB).
For GST-registered businesses, please download the toolkit (XLSX, 172KB).