Definitive Guide to Accounting 2026

Definitive Guide to Accounting 2026 | Bestar

Definitive Guide to Accounting 2026

Singapore Accounting Guide 2026

In 2026, the accounting landscape in Singapore has shifted from "periodic compliance" to "real-time transparency." Driven by stricter ACRA enforcement and the full-scale adoption of AI-enhanced filing systems, businesses can no longer rely on year-end "catch-up" bookkeeping.

This guide outlines the essential standards, tax obligations, and digital requirements you need to navigate the Singaporean financial year.

1. Regulatory Framework: SFRS & SFRS for Small Entities

Singapore accounting is governed by the Singapore Financial Reporting Standards (SFRS), which are nearly identical to the International Financial Reporting Standards (IFRS).

• SFRS (Full): Mandatory for large companies and those with public accountability.

  
  

• SFRS for Small Entities: A simplified version for SMEs that meet at least two of these criteria:

  
  

  • Total annual revenue ≤ S$10 million

  • Total assets ≤ S$10 million

  • Number of employees ≤ 50

Key 2026 Updates

• Sustainability Reporting: Large non-listed companies must now prepare for mandatory climate-related disclosures (aligned with ISSA 5000) starting for periods beginning on or after December 15, 2026.

  
  

• Classification of Liabilities: New amendments to SFRS(I) 1-1 require stricter classification of debt with covenants as current or non-current.

2. Tax Obligations: IRAS Compliance

Singapore maintains a territorial tax system with a flat corporate tax rate.

Feature	Details (YA 2026)
Headline Corporate Tax Rate	17%
Estimated Chargeable Income (ECI)	Must be filed within 3 months of Financial Year End (FYE).
Form C-S / C-S (Lite) / C	Final tax return due by 15 December (e-filing).
GST Registration	Mandatory if annual taxable turnover exceeds S$1 million.

Start-Up Tax Exemption (SUTE)

For the first three consecutive Years of Assessment (YA), qualifying new companies receive:

• 75% exemption on the first S$100,000 of normal chargeable income.

• 50% exemption on the next S$100,000.

3. ACRA Filing & Compliance Workflow

ACRA has moved toward a "Disclosure-Based" regime. The era of "Year-End Cleanup" has ended; ACRA now expects monthly bookkeeping to ensure audit trails are ready at any moment.

Critical Deadlines

1. Hold AGM: Within 6 months of FYE (for private companies).

   
   

2. File Annual Return (AR): Within 7 months of FYE.

   
   

3. XBRL Filing: Most companies must file financial statements in XBRL format via BizFile+. In 2026, enhanced validation tools will immediately flag mismatched comparatives or missing disclosures.

4. Digital Transformation: AI and Automation

In 2026, manual data entry is considered a business risk rather than a standard practice.

• AI-Assisted Bookkeeping: Software like Xero, QuickBooks, and local AI-driven tools now automate 90% of transaction coding.

  
  

• InvoiceNow: The nationwide e-invoicing network (based on Peppol) is now the standard for B2B transactions, allowing for instant reconciliation between buyer and seller accounts.

  
  

• Electronic Records: Digital records are the legal primary source; physical receipts are no longer required if high-resolution digital copies are maintained for 5 years.

5. Summary Checklist for 2026

• [ ] Switch to Monthly Closing: Ensure your books are updated every 30 days to avoid ACRA penalties.

  
  

• [ ] Review GST Status: Monitor turnover monthly to avoid late registration fines.

  
  

• [ ] Adopt InvoiceNow: Connect your accounting software to the national e-invoicing network.

  
  

• [ ] Assess Climate Reporting: Determine if your company falls under the new sustainability disclosure mandates.

How Bestar Singapore can Help

Definitive Guide to Accounting 2026

In 2026, staying compliant in Singapore requires more than just submitting forms; it requires a proactive, tech-driven approach. Bestar Singapore stands out as a leading Public Accounting Corporation (PAC) that bridges the gap between traditional compliance and modern digital financial management.

This guide explores how Bestar’s specialized 2026 service suite helps businesses navigate the evolving regulatory landscape.

1. Navigating the "Digital-First" ACRA Compliance

By 2026, ACRA has moved toward enhanced XBRL filing requirements and real-time data validation. Bestar helps businesses stay ahead through:

• Next-Generation Audit & Assurance: Bestar uses AI-powered tools to review 100% of transactions, moving beyond manual sampling. This ensures that your financial statements are not just compliant, but bulletproof against ACRA queries.

  
  

• Expert XBRL Preparation: Bestar’s team manages the complex mapping of financial data into the latest XBRL formats (Filing Financial Statements), ensuring accuracy and reducing the risk of late-filing penalties.

  
  

• Corporate Secretarial Integration: As a Registered Filing Agent with ACRA, Bestar integrates your secretarial and accounting data, ensuring that AGM minutes and Annual Returns are synchronized perfectly.

2. IRAS Tax Optimization & "InvoiceNow" Support

The Inland Revenue Authority of Singapore (IRAS) has increasingly shifted toward the InvoiceNow (Peppol) network for seamless tax reporting.

• GST & E-Invoicing Implementation: Bestar assists companies in transitioning to InvoiceNow-ready accounting software, ensuring that every GST claim is supported by a verifiable digital audit trail.

  
  

• Tax Planning & EIS Claims: Bestar helps businesses maximize deductions under the Enterprise Innovation Scheme (EIS), which in 2026 remains a critical pillar for companies investing in R&D and digital training.

  
  

• Corporate Tax (Form C-S/C): Beyond mere filing, Bestar provides strategic tax advisory to optimize your effective tax rate using available incentives like the Start-Up Tax Exemption (SUTE).

3. Mandatory Sustainability (ESG) Reporting

2026 marks a major milestone for sustainability disclosures in Singapore. Bestar provides specialized consultancy to meet these new standards:

• ISSB-Aligned Reporting: For companies falling under new climate-disclosure mandates, Bestar conducts Gap Analysis to identify missing data in Scope 1, 2, and 3 emissions.

  
  

• Non-Financial Internal Controls: They help establish systems to track sustainability metrics with the same rigor as financial data, preparing your firm for the mandatory "limited assurance" audits.

4. Why Choose Bestar in 2026?

Bestar differentiates itself by offering a one-stop-shop model that scales with your growth.

Feature	How Bestar Delivers
Scalability	Support for everything from pre-revenue startups to multi-national corporations (MNCs).
Specialized Funds Support	Expert services for Single Family Offices (SFOs) and MAS-regulated Fund Management Companies.
Transparency	No hidden fees; clear, upfront pricing for accounting, payroll, and audit packages.
HR & Payroll	Fully managed payroll services including CPF contributions and IR8A/AIS filing.

5. Summary: Transforming Compliance into Strategy

In 2026, accounting is no longer a "back-office" cost—it is a data-driven tool for growth. Bestar Singapore enables you to outsource the complexity of ACRA and IRAS regulations so you can focus on your core mission.

"At Bestar, we elevate your audit from a year-end formality to a core element of your business strategy."

Service Proposal and Compliance Checklist for Company Types (SME, FMC, and Family Office)

In 2026, Singapore’s regulatory environment has transitioned into a "Smart Compliance" era. For SMEs, Fund Management Companies (FMCs), and Family Offices, the requirements are distinct and require specialized handling to avoid heavy penalties and maintain tax incentives.

1. Service Proposal: The Bestar Advantage

Bestar Singapore provides an integrated "Single-Window" solution. We don't just file your returns; we optimize your corporate structure for 2026 mandates.

Core Service Pillars

• AI-Enhanced Accounting: Real-time bookkeeping using Xero/QuickBooks with automated "InvoiceNow" reconciliation to ensure your data is audit-ready 365 days a year.

  
  

• Regulatory Liaison: Acting as your Corporate Secretary and Tax Agent, we manage all communications with ACRA, IRAS, and MAS.

  
  

• Incentive Management: Specialized teams dedicated to Section 13O/13U tax incentive maintenance and Enterprise Innovation Scheme (EIS) claims.

  
  

• ESG & Sustainability: Early-adoption advisory for companies entering the mandatory climate-reporting bracket.

2. Compliance Checklist by Company Type

A. Small & Medium Enterprises (SME)

Focus: Operational efficiency and ACRA/IRAS deadlines.

Deadline	Requirement	Action Item
3 Months post-FYE	ECI Filing	Submit Estimated Chargeable Income to IRAS (Exempt if Revenue < $5M & ECI is Nil).
6 Months post-FYE	AGM	Hold Annual General Meeting to approve financial statements.
7 Months post-FYE	Annual Return	File Annual Return with ACRA via BizFile+; include XBRL if not an "Exempt Private Company."
15 Dec	Form C-S/C	Final Corporate Tax Return submission.
Continuous	GST (If Reg.)	Quarterly filing and payment within 1 month of quarter-end.

B. Fund Management Companies (FMC)

Focus: MAS Licensing, Capital Adequacy, and Conduct of Business.

• [ ] Monthly/Quarterly MAS Returns: Submit Form 1 (Assets & Liabilities) and Form 2 (Financial Resources) via MASNet.

• [ ] Annual Business Profile: File the Annual Business Profile Return (Form 25/1A) summarizing AUM and staffing.

• [ ] 2026 Digital Ad Standards: Ensure all LinkedIn/Social Media marketing complies with the new MAS Guidelines on Digital Advertising (Effective March 2026).

• [ ] Internal Audit: Maintain an independent internal audit function (outsourced to Bestar) to test AML/CFT frameworks and risk controls.

• [ ] Base Capital: Monitor that Base Capital remains above the S$250k (or relevant license) threshold daily.

C. Single Family Offices (SFO)

Focus: Tax Incentive Maintenance (13O/13U) and Economic Substance.

• [ ] Section 13O/13U Annual Declaration: Submit the annual reporting suite to MAS to confirm "Designated Investments" and "Local Business Spending" (LBS) targets were met.

• [ ] Minimum AUM Monitoring: For 13O, ensure DI remains above S$20M; for 13U, above S$50M.

• [ ] Global Investor Program (GIP) Equity Rule: If under GIP, verify at least S$50 million is held in Singapore-listed equities (REITs no longer count in 2026).

• [ ] Professional Headcount: Ensure at least one (13O) or two (13U) investment professionals are non-family members, as per the 2025/2026 tightened criteria.

• [ ] Transfer Pricing: Maintain "Indicative Margin" documentation for any intra-family or related-party loans (IRAS 2026 requirement).

3. Summary of Penalties (2026 Update)

The Corporate Service Providers Act 2026 has increased the cost of non-compliance.

• Late Filing (ACRA): Up to S$900 per late return.

  
  

• Register Violations: Up to S$25,000 for failing to maintain accurate Registers of Registrable Controllers (RORC).

  
  

• Incentive Revocation: Failure to meet LBS or AUM thresholds can lead to the clawback of tax exemptions for the entire financial year.

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