The Inland Revenue Authority of Singapore issued an E-tax Guide on “Simplified Record Keeping Requirements for Small Business” on 31 December 2013.
The Simplified Record Keeping (“SRK”) requirement will be effective from 1 January 2014.
Who can qualified for SRK?
A small business that meets ALL of the following conditions can qualify for SRK:
- The business’ annual revenue must be less than S$100,000 for the past two financial years;
- The business’ assets amounted to less than S$100,000 as at the end of the latest financial year;
- The business is not in the business of investment holding or property development; and
- The business is a sole-proprietorship or partnership that is not GST-registered.
What are the benefits of qualifying for SRK?
Qualifying small business should keep the following business records, where applicable:
- Daily revenue record
- Daily purchase record
- Monthly record of all business expenses
- Details of daily transport expenses
- Details of monthly staff remuneration expenses.
Business records kept for a financial year can also be used to prepare the Statement of Accounts and the Statement of Financial Positions. Businesses can refer to both statements when preparing their annual income tax returns.
Qualifying small businesses are still required to provide receipts upon their customers’ request to allow them who do not qualify for SRK to meet their respective record keeping requirements.
If you have any questions regarding the above, please contact me at firstname.lastname@example.org.