Can I keep accounting records and receipts in digital form only?
Electronic records are accepted if they are complete, readable, accessible and can be converted into writing. Documents issued electronically, such as e-Invoices, can stay electronic. If you scan a paper original, the Income Tax Act says to keep the paper original as well.
Malaysian law does not require paper only, but it sets conditions.
- Companies Act: section 245 does not specify the medium; records must explain the transactions, support true and fair financial statements and be capable of being audited.
- Income Tax Act, section 82A(4): records kept electronically must be retained in an electronically readable form and kept so that they are readily accessible and convertible into writing. If documents were originally kept on paper and later converted into electronic form, the original paper documents must be retained.
- LHDN Public Ruling 4/2000: where original documents such as invoices are already electronic, they can be kept in that form. Keep the system documentation too, such as the accounting manual and chart of accounts.
Good practice for digital records:
- Scan paper documents at readable quality soon after receipt, because thermal receipts fade within months
- Name and file records consistently (date, supplier, amount)
- Keep at least two backups, one outside the office
- Control who can edit or delete records, and keep an audit trail
- Be able to print or export them in Malaysia on request
E-invoices issued through the LHDN MyInvois system are digital by nature, so those are already kept electronically.
Losing the files because of a failed device is not an excuse in an inspection, so test your backups.
Legal basis
- Companies Act 2016, s.245
- Income Tax Act 1967, s.82
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- What is the difference between bookkeeping and accounting in Malaysia?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support decisions and tax filing. Good bookkeeping comes first, because accounts can only be as reliable as the entries beneath them.
- Is a Sdn Bhd legally required to keep accounting records?Yes. Section 245 of the Companies Act 2016 requires every company, including its directors and managers, to keep accounting and other records that explain its transactions and financial position. This applies even to a new, dormant or loss-making company.
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- What documents should a Malaysian company keep for bookkeeping?Keep every document that proves a transaction: sales and purchase invoices, receipts, bank statements, contracts, payroll records, and records of assets and loans. If a transaction is not supported by a document, it is hard to defend in an audit or tax review.
- In what language must accounting records be kept in Malaysia?Books and records should be in Malay or English. If original documents are in another language, such as Chinese, keep them, and expect to provide a written translation at the company's cost if LHDN asks. Financial statements lodged with SSM need a certified translation if not in Malay or English.