IRAS says a company must keep its source documents, accounting records and bank statements for at least 5 years from the relevant Year of Assessment. Bank statements alone are not enough. Most small private companies can skip an audit, but they still file financial statements, and GST registration starts once taxable turnover passes S$1 million.
What IRAS expects you to keep
Your company must be able to explain every transaction relating to its income, business expenses and purchases. IRAS asks for three kinds of record:
- Source documents such as sales invoices, purchase invoices, receipts and vouchers.
- Accounting records and schedules that summarise the transactions in order.
- Bank statements and any other records of transactions connected with the business.
Keeping only the bank statements counts as poor record keeping. A receipt for a taxi ride or an overseas trip, for example, is what backs up the expense in your books.
How long to keep them
At least 5 years from the relevant Year of Assessment. IRAS gives this example: for the financial year 1 Jan to 31 Dec 2022 (Year of Assessment 2023), keep the records until 31 Dec 2027. Filing the tax return does not release you from keeping them.
What happens if records are missing
Not keeping proper records is an offence under the Income Tax Act and the GST Act. IRAS may estimate your revenue itself, disallow expense claims or GST input tax claims, and impose penalties of up to S$5,000.
Three limits to watch
| GST registration | Required when taxable turnover is more than S$1 million at the end of the calendar year (apply 1 to 30 January, registered 1 March), or when you expect more than S$1 million in the next 12 months (apply within 30 days of the forecast) |
|---|---|
| Audit exemption | A private company qualifies if it meets at least two of: revenue of S$10 million or less, total assets of S$10 million or less, 50 employees or fewer, for the past two financial years |
| Record keeping | At least 5 years from the relevant Year of Assessment |
A simple monthly routine
- Collect every invoice, receipt and bank statement for the month, on paper or as files.
- Match each bank line to a document, and list what is missing.
- Record the entries in your accounting software and check the totals against the bank balance.
- Store the month in one folder, named by year and month, so a lender, buyer or IRAS can be answered quickly.
Clean monthly books also help when you apply for credit. Lenders review your financial statements and bank statements, see our guide to the SME working capital loan. If you would rather hand this over, see our accounting and bookkeeping service.
Questions we often hear
Can I keep receipts and invoices digitally?
Yes. IRAS says source documents such as receipts, invoices and vouchers can be kept in physical or electronic form.
Does my company need an audit?
A private company can be exempt if it meets at least two of three tests for the past two financial years: revenue of S$10 million or less, total assets of S$10 million or less, and 50 employees or fewer. A company under two years old checks its current year. The exemption does not change what you file with ACRA.
When must I register for GST?
When your taxable turnover is more than S$1 million at the end of a calendar year, or you expect it to be more than S$1 million in the next 12 months.
Sources: IRAS: Record keeping requirements for companies; IRAS: Do I need to register for GST; ACRA: Audit exemptions, small company concept (updated 3 Feb 2026).