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Guides · Compliance

What business records must you keep in Malaysia?

Keep the records that explain every amount your business earns, spends, owns and owes. That includes invoices, receipts, bills, bank statements, contracts, ledgers, financial statements and relevant SST or e-Invoice records. Malaysian tax and company records generally use a seven-year retention baseline, subject to your circumstances.

Last reviewed: 30 June 2026

Key points

  • Keep evidence for both income and expenses.
  • Retain supporting records with the ledger entry they explain.
  • Digital records are acceptable when complete, accurate and retrievable.
  • Confirm exceptions with LHDN, RMCD or a licensed adviser.

Why does keeping business records matter?

Malaysian businesses are required to keep sufficient records to explain their income and expenses. If LHDN (the Inland Revenue Board) reviews or audits you, those records are how you back up what you filed. Good records also make your year-end, SST returns and financing applications far easier.

It's not just tax: a company (Sdn Bhd) must keep proper accounting records under the Companies Act 2016, and SST-registered businesses keep records for RMCD.

Which records should a business keep?

In practice, keep anything that evidences a transaction: sales invoices and receipts; purchase invoices and bills; payment vouchers and bank statements; contracts and agreements; your ledgers and financial statements; and supporting documents like delivery orders and credit notes.

If you're SST-registered, keep your tax invoices and SST-02 returns. If you issue e-Invoices, keep the validated e-Invoices (with their LHDN unique identifier) alongside the rest.

How long should business records be kept?

The widely-applied rule is seven years. The Income Tax Act 1967 requires business records to be retained for seven years from the end of the year the records relate to; the Companies Act 2016 also requires accounting records to be kept for seven years.

Because the exact period and any exceptions depend on your situation, confirm with LHDN or a licensed tax agent, but seven years is the safe baseline most Malaysian SMEs work to.

Can business records be kept digitally?

Records don't have to be paper. Properly kept digital records are acceptable, and they're easier to search, back up and produce on request. The key is that they're complete, accurate and retained for the required period.

This is where bookkeeping software helps: every invoice, receipt and ledger entry is captured and kept together, so a seven-year history isn't a shoebox of paper. It's a file you can search in seconds.

Which business records should you keep?

RecordWhat it supportsExamples
Sales recordsIncome and customer balancesInvoices, receipts, credit notes
Purchase recordsCosts and supplier balancesBills, purchase invoices, payment vouchers
Bank recordsCash movement and reconciliationStatements, deposit records
Accounting recordsThe complete booksLedgers, trial balance, financial statements
Compliance recordsTax and filing obligationsSST-02 returns, validated e-Invoices

How would one RM transaction be filed?

Example only: for an RM1,500 sale paid by bank transfer, keep the invoice, the payment evidence and the matching bank entry together. The invoice explains the sale, the bank record proves the cash movement, and the ledger connects both to your accounts.

How Orbit Finance handles this

Orbit Finance keeps invoices, purchases, payments and ledger entries together on your device, making the history searchable and easier to produce when it is needed.

  • One connected record for each transaction
  • Searchable sales and purchase history
  • Local-first data remains on your device
Orbit Finance purchases workspace for supplier bills and expenses
Not legal or tax advice. This is general information for Malaysian small businesses. Record-keeping requirements are set by LHDN, RMCD and the Companies Act. Confirm what applies to you with a licensed professional.

Questions, answered

How long must I keep business records in Malaysia?

Seven years is the standard. The Income Tax Act 1967 requires records to be kept for seven years, and the Companies Act 2016 sets the same period for accounting records. Confirm any exceptions for your situation with LHDN or a tax agent.

What records does LHDN expect me to keep?

Records that explain your income and expenses: invoices, receipts, bills, payment vouchers, bank statements, contracts, ledgers and financial statements, plus SST and e-Invoice records if they apply to you.

Can I keep records digitally instead of on paper?

Yes. Properly kept digital records are acceptable, as long as they're complete, accurate and retained for the required period. Bookkeeping software keeps everything together and searchable.

Does Orbit Finance keep these records for me?

Yes. Orbit Finance keeps your invoices, receipts and ledgers together on your own device, so your history is in one searchable place. Your data stays local-first.