What simplified record keeping changes
The fourth-edition guide is published 30 January 2026, with the fourth edition originally dated 23 April 2024. Simplified Record Keeping (SRK) began on 1 January 2014 for YA 2015. Qualifying sole proprietorships, partnerships and self-employed persons may translate receipts and invoices directly into registers or listings and retain the business records instead of those contributing source documents. IRAS may ask for the original business records to verify them. Contracts, correspondence and other documents that cannot be translated into and verified from a register must still be kept. SRK is not permission to dispense with accounts.
Four eligibility conditions and the meaning of thresholds
All conditions must be met: annual revenue of S$200,000 or less in each of the past two financial years; total assets below S$100,000 at the latest financial year end; no investment-holding or property-development business; and no GST registration. Revenue is measured before business discounts. Assets use total gross book value of fixed and current assets, not merely net assets or cash. Investment holding includes long-term property/share investments yielding rent, interest or dividends. S$200,000 is inclusive; the asset limit is strictly below S$100,000.
Adoption, new businesses and continuing eligibility
No notification to IRAS is needed to choose SRK. A qualifying existing business should consider whether eligibility can be maintained, because returning to full record keeping can be costly. Negotiating a large contract, purchasing expensive machinery or diversifying into property development may indicate that conditions will cease to be met. A new business that has not filed its first annual return may adopt SRK from commencement if it expects to meet the conditions in the foreseeable future. This new-business option differs from the two-year test after a first return has already been filed.
Seven worked eligibility examples
Appendix 1 uses 2023/YA 2024 facts. A clothing sole proprietor with revenue S$180,000/S$155,000 and assets S$88,000 qualifies if future eligibility is expected. An F&B proprietor with S$218,000/S$95,000 revenue and S$150,000 assets fails both limits. A hardware partnership with only one completed year, S$195,000 revenue and S$80,000 assets, that has filed its first return does not meet the two-year condition. An investment-holding partnership with S$150,000/S$170,000 revenue and S$500,000 assets is excluded. A newly started computer-repair business before its first return can use the expected-eligibility option. A commission agent with S$185,000/S$190,000 income and S$20,000 assets qualifies. A hawker with one year of S$150,000 income and S$50,000 assets after filing a first return does not meet the two-year condition. The last example’s conclusion mistakenly calls the hawker a commission agent; the one-year reasoning remains clear.
The five registers and their required detail
Keep applicable daily revenue, daily purchases, monthly business expenses, daily transport expenses and monthly staff-remuneration records. Appendix 2 organises revenue by day across January–December with monthly totals. Appendix 3 records purchase date, supplier, goods/services, amount payable and payment method. Appendix 4 records expense-incurred date, description, amount, payment method and payee. Appendix 5 adds trip purpose, destination, transport mode and traveller’s name/designation. Appendix 6 records employee name/designation/ID, remuneration, employer CPF, Skills Development Levy and Foreign Worker Levy. Each carries business/taxpayer name and financial year, with month where relevant and totals. Private-car expenses and business-owner salaries are not deductible; recording them does not create a deduction.
Convert records into accrual-based accounts
Prepare the statement of accounts and balance sheet on an accrual basis: recognise income when earned and expenses when incurred. Appendix 7’s four-line statement is revenue; gross profit/loss after cost of goods sold; total business expenses; and net profit/loss after expenses. Cost of goods sold is opening stock plus purchases minus closing stock. Expense headings cover telephone, entertainment, utilities, rent, stationery, advertising, transport, remuneration and other items. Private/capital expenses, including private medical costs, private cars and owner salaries, are not allowable tax deductions. Appendix 8’s sole-proprietor balance sheet separates non-current/current assets, long-/short-term liabilities and proprietor funds including capital, retained/current profit less drawings. Total assets must equal liabilities plus proprietor funds. Both statements identify preparer and certifier with names, designations, dates and signatures.
Exceptions, retention and day-to-day controls
Provide receipts when customers request them even though a qualifying business need not retain the translated source receipts itself. Industry-specific record templates may be used. Cash-payout scheme claims still require relevant source documents; EIS cash-payout records must be retained for seven years under sections 37R(24) and (26). The guide also requires records for at least five years after strike-off, dissolution or winding up. Non-compliance may carry up to S$5,000 fine and/or six months’ imprisonment under the cited income-tax/GST provisions. Start records at commencement, record and verify daily, use understandable digital systems with debt/payment alerts and a separate business bank account. For clarification, use secured myTax Mail with Singpass or a Singpass Foreign user Account.
Changes recorded in this edition
The revenue threshold increased from S$100,000 to S$200,000 from 1 January 2020/YA 2021. The April 2022 update clarified testing both past years and revised statutory/website references. April 2024 addressed EIS retention, source-document exceptions, practical tips and self-employed examples. January 2026 is recorded as editorial changes. These publication notes distinguish substantive past changes from an editorial reissue.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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