- Singapore is implementing mandatory e-invoicing and direct tax data reporting to enhance tax compliance.
- A phased rollout starts in May 2025, requiring businesses to update their accounting systems.
- Current GST-registered businesses file quarterly returns manually via IRAS’ myTax Portal.
- Planned changes will mandate electronic invoicing and direct tax data reporting.
- E-invoicing automates invoice data exchange, reducing manual processes.
- The InvoiceNow network was introduced in 2019 but did not include tax reporting.
- In 2024, IRAS and IMDA announced an upgraded e-invoicing system for transaction-level data reporting.
- A pilot launch is set for May 1, 2025, with gradual expansion in subsequent years.
- Businesses need to adapt systems for real-time tax data transmission, facing initial upgrade costs.
- Many businesses still use manual tax processes, risking errors and inefficiencies.
- Real-time transaction data access by tax authorities necessitates modernization of tax functions.
- Automation investment will help businesses align with Singapore’s digital tax transformation.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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