SMEs Face New Tax Reporting Pressures Amid Global Compliance Shifts: Y Advisory Offers Strategic Insight

By The Honest News Today | June 26, 2025

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As global tax regulations tighten and digital reporting standards evolve, small and medium-sized enterprises (SMEs) are finding themselves under increasing scrutiny—and pressure. Recent international mandates on tax transparency, particularly those related to the OECD’s Pillar Two framework and digital tax reporting (e.g., e-invoicing), are reshaping the compliance landscape. For SMEs navigating these waters, expert advisory is no longer a luxury—it's a necessity.

Y Advisory, a boutique consulting firm specializing in finance, accounting, and tax strategy, has stepped into this climate with timely guidance.

“We’re seeing a significant shift in how tax authorities engage with businesses. Real-time reporting, cross-border transparency, and AI-aided audits mean companies need to be proactive, not reactive,” says Lisa Yuen, Managing Director at Y Advisory.

Key Changes SMEs Should Watch

1. Global Minimum Tax (Pillar Two):While primarily aimed at multinationals, the global minimum tax rule has indirect effects on SMEs in multinational supply chains. Reporting expectations and data disclosures are expected to trickle down.

2. Digital Tax Reporting:Countries including the UK, Australia, and Singapore are accelerating the rollout of e-invoicing mandates. In 2025 alone, over 20 jurisdictions updated their VAT/GST digital reporting requirements.

3. Crypto and Digital Asset Accounting:SMEs dabbling in crypto—whether for payment, investment, or incentives—are now subject to complex disclosure rules. The IRS and other tax authorities have clarified expectations for cost basis tracking and valuation accuracy.

The Advisory Edge

Y Advisory recommends that SMEs take the following steps:

• Conduct a Financial Systems Audit: Ensure your ERP or accounting software can handle real-time reporting and integrates with tax authority APIs.

• Review Transfer Pricing Policies: Even small cross-border transactions now face heightened scrutiny under new BEPS enforcement regimes.

• Plan for ESG-Tax Alignment: Many jurisdictions now link sustainability goals with tax credits or penalties. Y Advisory is helping clients align ESG strategies with fiscal incentives.

“Our goal is to make tax strategy part of your growth plan—not just a year-end panic,” Yuen adds. “Too many businesses treat compliance as a burden, but with the right tools and mindset, it can be a strategic advantage.”

What Comes Next

Y Advisory will be releasing its Mid-Year Tax Outlook in July 2025, offering scenario planning tools and sector-specific compliance checklists.

As tax and financial ecosystems become more complex, firms like Y Advisory play a critical role in helping businesses not just survive—but thrive.

About Y Advisory:Y Advisory is a strategic consultancy providing tailored financial, tax, and accounting solutions to startups, SMEs, and global enterprises. With a focus on clarity, compliance, and client-centric solutions, Y Advisory is redefining the way businesses approach finance.