Every Sdn. Bhd. company must ensure to keep adequate records of the following financial documents for accounting purposes:
books of accounts
invoices, bank statements, cheque butts, receipts for payments, payroll records, copies of receipts issued, vouchers
other documents required to validate entries in any books of accounts
sales and purchases ledger, general ledger
at the end of the accounting period, the stock in trade should be valued and the appropriate records maintained
Important Characteristics of the "records", and other requirements to take note of:
Receipts issued should be serially numbered
Accounting entries for each transaction must be recorded within 60 days of the transaction.
Records and books of accounts should be written in the national language or in English language
Source documents and accounting documents, whether manual or electronic, should suffice to explain each business transaction.
If the original documents are in electronic form, they can be retained in such form
Taxpayers and company directors must keep adequate records for a period of 7 years.
All records pertaining to Malaysian business must be kept and retained in Malaysia.
The Consequences of failing to keep sufficient records
The chargeable income of the taxpayer may be determined according to the best judgement of the Director General of LHDN (DG) and an assessment made accordingly.
The taxpayer and Company Directors may be prosecuted and, if convicted, face fines, imprisonment, or both.