Guides · Compliance
What business records must you keep in Malaysia?
Which records a Malaysian business must keep, how long to keep them (the 7-year rule), and how e-Invoice and digital records fit in — a plain-English guide for SMEs.
Why keeping records matters
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.
What records to 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 to keep them
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.
Digital records are fine — and easier
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.
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.
Keep seven years of records in one place
Orbit Finance keeps invoices, receipts and ledgers together on your device. One-time RM 100.00.