In Singapore’s highly regulated business environment, record-keeping is not just a matter of good organization—it is a legal mandate. As we navigate 2026, both the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS) have intensified their focus on digital data integrity and transparency.
Whether you are a startup founder or a seasoned director, understanding how long to keep your receipts, invoices, and ledgers is critical to avoiding heavy fines. At Hallmark Corporate Services, we ensure your business remains compliant with the latest statutory retention requirements.
1. The 5-Year Rule: ACRA & IRAS Requirements
Under the Singapore Companies Act and the Income Tax Act, companies are required to keep their accounting records and supporting documents for at least five years.
- The Timeline: This 5-year period begins from the end of the relevant Year of Assessment (YA).
- Example: For the financial year ending 31 December 2025 (relevant to YA 2026), your records must be retained and accessible until at least 31 December 2031.
- Ceased Businesses: Even if your company has been struck off or dissolved, the responsibility does not vanish. Directors and officers must ensure records are kept for 5 years post-dissolution.
2. What Exactly Are “Accounting Records”?
In 2026, the definition of “records” is broad and tech-neutral. IRAS requires that your records “sufficiently explain” your transactions. This includes:
- Source Documents: Physical or digital copies of sales invoices, purchase receipts, vouchers, credit notes, and delivery orders.
- Bank Statements: All business bank account statements and merchant account summaries (e.g., Stripe or PayPal logs).
- Accounting Ledgers: General ledgers, journals, accounts payable/receivable, and fixed asset registers.
- GST Records: If GST-registered, you must maintain a GST Account, tax invoices issued/received, and import/export documentation to support your 9% GST declarations.
3. Digital vs. Physical Storage
Singapore law allows you to store your records electronically, provided they are legible and can be retrieved easily during an audit.
- The Digital Advantage: In 2026, many businesses have moved to cloud accounting software (like Xero or QuickBooks).
- IRAS Standards: If you store records digitally, you must ensure the system has proper backup procedures and an audit trail that prevents unauthorized alterations. Physical source documents (like paper receipts) do not need to be kept if a clear digital image is maintained.
4. Penalties for Improper Record-Keeping
Failing to maintain proper accounts is a serious offense in Singapore. The consequences for 2026 include:
| Type of Violation | Potential Penalty |
| First-time Offense | A fine of up to S$5,000 and/or a jail term of up to 6 months. |
| Tax Audit Failure | IRAS may disallow expense claims, resulting in a higher tax bill and a penalty of up to 200% of the tax undercharged. |
| Director Liability | ACRA can prosecute directors personally, leading to potential disqualification or debarment. |
5. Best Practices for 2026 Compliance
- Adopt a “Scan-as-you-go” Policy: Use mobile apps to digitize receipts immediately to prevent ink fading on thermal paper.
- Centralize Your Storage: Whether physical or on the cloud, ensure your Company Secretary or Accountant knows exactly where the 5-year archive is held.
- Annual “Purge” Reviews: Once a year, review your records and securely dispose of those that have exceeded the 5-year legal requirement to save on storage costs.
Conclusion: Your Compliance is Our Priority
Maintaining a meticulous paper trail is the best defense against a sudden tax audit or regulatory query. In 2026, being “too busy” is not a valid legal defense for missing records.At Hallmark Corporate Services, we provide professional bookkeeping and corporate secretarial services designed to keep your business “audit-ready.” We manage your records with the precision that Singapore’s regulators demand, giving you the peace of mind to focus on scaling your business.