A Guide to Staying Compliant and Empowering Business Growth
At YYC, we understand that staying compliant with tax requirements can feel overwhelming—especially for small businesses. That’s why we’re here to help simplify it. Based on the latest IRAS Record Keeping Guide (March 2025), here’s what every non-GST registered business in Singapore should know.
With proper record keeping, you not only meet legal obligations—you also gain the clarity and confidence to grow your business sustainably.
✅ Summary at a Glance
Category | Requirements |
Purpose | To comply with Income Tax Act and support tax declarations |
Types of Records | Source documents, accounting records, staff & payroll details, contracts |
Formats Allowed | Physical or electronic (e.g. Excel, accounting software, image systems) |
Retention Period | 5 years from YA; 5 years after cessation for companies and LLPs |
Tools Recommended | IRAS Accounting Software Register Plus (ASR+) compliant software |
Non-compliance Risks | Penalties up to $5,000, disallowed claims, or estimated tax assessments |
Best Practice Tips | Record transactions daily, keep business and personal finances separate |
📘 What Should You Be Keeping?
- Income Records: Receipts, contracts, rental income agreements, export documents
- Expense Records: Supplier invoices, payment vouchers, rental agreements, CPF contributions
- Purchase Records: Invoices, import documents, bank statements
- Payroll & Staff: Staff details, salary records, CPF evidence
- Stock & Assets: Inventory lists, fixed asset schedules, depreciation records
- Other Documents: Credit notes, bank statements, travel and entertainment expenses
💻 Physical vs Electronic Records
IRAS supports both formats, but digital systems offer clear advantages:
- Real-time tracking and automated reporting
- Easier tax filing and data backups
- Reduced physical storage needs
- Improved transparency and cash flow management
YYC Tip: Consider moving to an IRAS-approved accounting software for long-term ease and compliance.
🚨 Penalties for Non-Compliance
Failing to maintain proper records can result in:
- Expense or capital allowance claims being disallowed
- IRAS estimating your income based on best judgement
- A maximum fine of $5,000 or 6 months’ jail, or both