There are important things to know and understand about record retention and its effect on your liability under the Income Tax Act. For instance, any person who is obliged to keep record must also provide appropriate entries on those items specifically within 60 days after each transaction was made. Moreover, such information must be ready to view and access in electronic forms and should also be convertible into writing. The Income Tax Act also imply that proper record maintenance means the person in charge has originally kept the information in their manual or written forms. All files regarding businesses in Malaysia must also be kept and retained in the country.
All required documentation could be in the form of:
- Electronic format.
- Physical or written books of accounts as well as paper-based source documents with the inclusion of computer printouts.
- Details of accounting system which include codes of accounts, program and system documentation, charts, instruction and specification manuals.
These are very important requirements of document retention in Malaysia which must be complied with in order to avoid penalties and legal issues during a tax audit. Of course with the help of a reliable and registered accounting services firm, you will find less hassles and spend less time in maintaining the required documentations for your company.