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(a) BOOK-KEEPING AND ACCOUNTING REQUIREMENTS

72. According to Article 13 of the Company-Tax Ordinance of 1925, foreign companies working in this country must arrange their book-keeping in such a way as to show all the data necessary for calculating the profits made by the enterprise in N.E.I. The taxpayers are expressly informed that, in the checking of their return, their book-keeping will be taken as a starting-point.

73. The dealings of companies incorporated in N.E.I. must be recorded in such a manner that the profit made through the carrying on of the business, or from the capital employed or invested outside, can be ascertained through the books. Companies incorporated abroad must keep their books in such a manner as to show, not only the profit made through the business in N.E.I., but also income from reserve funds belonging to that business, regardless of where such funds may be invested. The books must be kept in either Dutch, Malay or Chinese, or in another language approved of by the director of finance (French, English, German). The book-keeping must include a continuous record of the cash position, and a statement of debtors, creditors and stocks, which must be kept up regularly and closed off annually, and, furthermore, a balance-sheet must be made up every year. The books and documents relating thereto must be kept for ten years.

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