Singapore need to further digitize when it comes to accounting and tax, according to the TMF Group.
While the island state has adhered relatively well to international accounting standards—a trend only seen in 21% of jurisdictions in Asia Pacific, it trails behind its Asian counterparts in digitization, TMF Group pointed out.
According to the group’s Global Business Complexity Index report, Singapore ranks among the minority (46%) of jurisdictions in the region where it’s not compulsory to submit tax invoices electronically.
Although electronic invoices are becoming more commonplace in Singapore, the lack of legislation deeming it necessary means that there is still a significant number of companies processing their invoices manually, TMF Group said.
“Adopting new digital technologies, such as artificial intelligence (AI), blockchain and cloud computing, will enable faster and more accurate processing of reports, contributing to the competitive edge that Singapore will need to develop into a global accounting hub,” The TMF Group noted.
Overall, Singapore ranks highly as one of the easiest places to do business in Asia, according to the TMF Group.
In addition, as one of the 83% of jurisdictions globally that impose significant fines for non-compliance to accounting and tax standards, Singapore also implements hefty penalties, the group noted.
The country’s deterrent measures eschew corruption and have helped to promote a trusted business environment for international investment in the country, the company added.