General Overview

Introduction

This guide is designed to assist businesses in preparing and keeping their records. The guidelines set out the minimum records required to be kept to comply with Singapore tax laws.

Why Keep Records

You have to keep sufficient records to enable your business income to be readily determined. For records relating to the accounting periods ending on or after 1 Jan 2007, the minimum period of retention is 5 years. For records relating to the accounting periods ending before 1 Jan 2007, the minimum period of retention is 7 years. You can be penalised or denied claim for expenses if you fail to keep proper records.

The responsibility in record keeping lies with the business owners. All business owners are expected to put in place controls or measures to ensure your income tax/ GST declarations are duly supported with source documents.

Keeping good business records also benefit businesses in the following ways:

(a) It allows you to have better control of your business by facilitating financial planning and decision making;
(b) The cost and efforts required to fulfill your tax obligations are much lower; and
(c) It will be easier to detect losses, employee fraud and theft.

Records That Must be Kept by All Businesses

Good business records should include:

(a) A record of receipts and payments, or income and expenditure;
(b) The source documents to substantiate the entries in your records; such as vouchers, bank statements, invoices, receipts and other relevant papers;
(c) A record of the assets and liabilities of your business, including listings of your business debtors, creditors and cash/ bank account balances.