Page 79 - CMA Journal (May-June 2025)

TOP TECHNOLOGY TREND

T T T

Reshaping Accounting

and Finance

In an era marked by rapid digital transformation, (with China, Hong
technology is fundamentally reshaping the global Kong, and others) to
landscape of accountancy, finance, and taxation. test cross-border CBDC
Governments and regulatory bodies across regions are transfers. Altaf Ismail, FCMA
responding with new frameworks to harness these Principal - Statutory &
technologies while ensuring compliance and transparency. E-Invoicing Taxa on MENA
This article explores how various countries are adapting to E-invoicing refers to McDermo Arabia Co. Ltd.,
these shifts. The countries covered are Pakistan, China, tamper-proof electronic Saudi Arabia
India, Saudi Arabia, UAE, and Malaysia. It also highlights the documents that allow
current and future implications for industry practices, real-time verification and eliminate the need for paper
professional competencies, and learning and earning receipts. This significantly improves efficiency in
opportunities worldwide— especially in Pakistan. accounting, reduces errors, enhances audit trails, and
strengthens tax compliance through greater transparency.
Central Bank Digital Currency (CBDC)
1) China-China pioneered electronic invoices (“e-fapiao”)
CBDC transactions refer to Central Bank Digital Currency to combat fraud and streamline VAT reporting. By 2020,
transactions. These are digital payments or transfers made the Shenzhen Tax Bureau had issued over 10 million
using a digital form of a country’s official currency, issued e-invoices in partnership with tech firms.
and regulated by the central bank. A CBDC is a digital
version of a country's currency (e.g., yen, euro, or dollar), 2) Malaysia - In 2023, Malaysia’s government announced
but unlike cryptocurrencies (like Bitcoin), it is issued by a a phased e-invoicing mandate to modernize its tax
central bank. administration and improve compliance. Beginning
August 2024, large taxpayers (with annual turnover
1) China - China launched the Electronic Payment over RM 100 million) are required to issue electronic
(e-CNY), called the digital yuan. Pilot programs for the invoices, with the mandate extending to all businesses
digital yuan began in 2020 and have since expanded to by July 2025. This means that within a couple of years,
major cities and millions of users. By mid-2025, China’s every business transaction in Malaysia—B2B and
central bank announced plans to internationalize the B2G—will be digitized.
e-CNY and established an international digital yuan
center in Shanghai. The e-CNY provides a state-backed 3) India - India initially mandated e-invoices for large
digital payment instrument that could reshape cash companies (with turnover over INR 500 crore) in
management and cross-border transactions for October 2020. The threshold was gradually lowered,
Chinese companies. and by 2023 it applied to businesses with turnover
above INR 5 crore (approximately USD 600,000).
2) India - The Reserve Bank of India (RBI) launched pilots
for a Digital Rupee (e-INR) in late 2022—first for 4) Saudi Arabia - A major technological leap in KSA has
wholesale settlements and then a retail CBDC pilot been the implementation of nationwide electronic
during 2022–2023. By March 2025, the retail e-INR pilot invoicing (e-invoicing) to modernize tax compliance.
had scaled up to 1.016 billion rupees in circulation The Saudi tax authority (ZATCA) introduced e-invoicing
(around 10-fold growth from a year prior) and reached regulations in 2020, rolling them out in two phases:
about 6 million users. The RBI involved 17 banks in the
pilot and enabled offline and programmable payment Phase 1 (December 2021): All VAT-registered businesses
features in trials. were required to generate and store electronic invoices.
Phase 2 (January 2023): Known as the “Integration
3) UAE - In 2023, the Central Bank of the UAE (CBUAE)
launched its Digital Dirham strategy, with plans to Phase,” businesses must integrate their systems with
introduce both wholesale and retail CBDCs. The UAE is ZATCA’s platform (“FATOORA”) to transmit invoices in

also a participant in international projects like mBridge real time.
ICMA’s Chartered Management Accountant, May-June 2025 77