A company bank interest review should identify interest separately from sales and give the accountant the evidence needed for the corporate tax computation. Do not assume an exemption described for an individual’s bank account automatically applies to a company. IRAS’s corporate-income guidance includes interest among relevant income categories.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Identify the receipt and earning period

Keep the bank statement, deposit advice, account holder and currency. Separate interest from a returned deposit principal, fee refund or promotional payment. A short bank narrative may not describe the entire transaction.

Record when the interest was earned and when it was paid. Give the accountant the terms and any accrued amount rather than relying only on the cash received during the year.

Reconcile to the accounts

Find the relevant income entry and any receivable already recorded. Check whether an automated bank feed treated the receipt as sales or matched it to another item. Avoid recognising the same interest once through an accrual and again when cash arrives.

Keep the income category visible in the tax-preparation pack. The treatment of revenue for a particular filing or business type needs its own review; do not combine all receipts into turnover without understanding the measure.

Example: a term deposit matures

The bank returns principal and interest together. Retain the advice showing each component and reconcile the principal to the deposit balance. The full maturity receipt should not automatically become taxable income or sales in the working schedule.

Retain the tax conclusion

Ask the accountant to assess the source, timing and any relevant treatment under current corporate rules. Keep the supporting calculation with the tax computation. This practical review does not determine every domestic or overseas interest outcome from the bank’s location alone.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.