12/01/2026
📢 Singapore SME Update: Key Accounting & Tax Changes You Should Know (2026–2027)
If you’re an SME owner, finance lead, or preparing your business for growth, a few important updates from ACRA and IRAS are worth your attention.
🔹 ACRA: Amendment to FRS 119 (Issued August 2025)
ACRA has introduced an amendment to FRS 119, now titled “Subsidiaries and Small Entities without Public Accountability: Disclosures.”
Voluntary adoption
Applies to annual reporting periods starting on or after 1 January 2027
Early adoption allowed if suitable for your business
This amendment significantly reduces disclosure requirements for small entities without public accountability—covering most SMEs.
To qualify, businesses generally need to meet criteria such as:
Revenue under S$10 million
Assets under S$10 million
Fewer than 50 employees (plus other qualifying conditions)
📉 Impact: Financial statements could be reduced by an average of ~4.5 pages, saving time and compliance costs—especially helpful for SMEs preparing for growth or future standard changes in 2027.
🔹 IRAS: GST InvoiceNow Requirement (Effective 1 April 2026)
A major compliance shift is coming for GST-registered SMEs.
From 1 April 2026, all new voluntary GST registrants must:
Transmit invoice data to IRAS using InvoiceNow-Ready Solutions
Use the Peppol e-invoicing network
This requirement is mandatory, not optional.
Key points:
Applies to most taxable supplies
Requires compatible accounting software
Requires Peppol ID registration
Onboarding may take 3–12 months
🟢 Soft launch: May 2025
💰 Support available: Productivity Solutions Grant (up to S$30,000)
Record-keeping rules remain the same, but this introduces an added technology layer to GST compliance—planning early is critical.
🔹 IRAS: R&D Tax Measures under the Enterprise Innovation Scheme (EIS)
The Enterprise Innovation Scheme (EIS) was refreshed in late 2025 and runs through YA 2028.
What it offers:
Up to 400% tax deduction on the first S$400,000 of qualifying R&D spend (staff costs & consumables)
250% deduction on amounts above that
Option to convert up to S$100,000 into a 20% cash payout (max S$20,000 per year)
📊 SMEs represent around 85% of claimants, making this especially relevant for businesses involved in technology, product development, or innovation.
Strong documentation from day one is essential to successfully claim these benefits.
