In Papua New Guinea, businesses are required to maintain accurate and up-to-date financial records for bookkeeping purposes, as specified by the Internal Revenue Commission (IRC). These records must be kept for a minimum period of seven years, and must include:
- Sales and purchase invoices, including tax invoices
- Cashbook, bank statements, and other records of financial transactions
- Financial statements, including profit and loss statements and balance sheets
- Records of all assets and liabilities
- Records of any income received from sources other than sales, such as rental income or interest income
- Records of any deductions or exemptions claimed
- Records of any taxes paid, including goods and services tax (GST) and company tax
It is also important for businesses to keep accurate records of employees’ wages and taxes withheld, in order to comply with payroll tax and other obligations. The IRC may audit the records of a business at any time to ensure compliance.
It is very important to work with professional in accounting and tax to make sure that you are in compliance with all the regulations, a mistake in the bookkeeping or not comply with the regulations could lead to penalties and fines.