Singapore fiscal year: Everything you need to know (2024)

Companies in Singapore, as a part of the incorporation process, can choose their fiscal year based on what suits their business best.

Selecting the right financial year-end date can mean a whole different for your business operations, from financial reporting to operational rhythms.

This flexibility allows your business to optimize its financial planning and tax strategies.

In our article, you will learn everything about

• Singapore fiscal year and the difference between fiscal year and calendar year;
• Financial year-end and how to choose the “best” financial year-end date;
• Singapore assessment year and what to do after your FYE.

Curious to learn more? Let’s dive into this article crafted by our experts who know how to help Singapore start-ups thrive.

1. Introduction to Singapore fiscal year

1.1. What is a fiscal year?

A Singapore fiscal year, also known as a financial year (or sometimes a budget year), is a 12-month period used by businesses for financial reporting and taxes. 

A fiscal year is also used in government accounting and for budget purposes.

In Singapore, a fiscal year usually starts on April 1st and ends on March 31st of the following year. 

After selecting your financial year-end date, you must inform IRAS because deadlines for unaudited financial statements, annual reports, and tax filings depend on it.

If you outsource accounting services in Singapore, they will handle this process and ensure all documents are prepared on time.

1.2. Advantages and disadvantages of fiscal year

Every Singapore company must have a fiscal year. You can choose your own company's financial year-end date.

There are pros and cons when having your own fiscal year, as opposed to the universal fiscal year required in other countries.

1.3. What is the difference between a fiscal year and a calendar year?

Now that we learn what a fiscal year is and the advantages of using a fiscal year. Many business owners still find confusion between a fiscal year and a calendar year as some choose a calendar as their fiscal year in Singapore.

The table below will showcase the distinction between these two terms.

2. Introduction to Singapore's financial year end

2.1. What is the financial year end in Singapore?

The financial year end in Singapore or FYE, is the last day of your company's fiscal year (your accounting period). This date recurs every 12 months. You can choose any date as your financial year end.

The FYE is crucial for companies because it determines when they need to file mandatory legal documents, such as annual returns, corporate tax returns, ECI filing, AGM filing, etc.

2.2. How do you determine an FYE for your new company in Singapore?

If you have a new company in Singapore, here are 5 notes you need to remember before determining your company FYE:

• The fiscal year must end on the date of your choice;
• Your first financial year can not be over 18 months (unless the Registrar allows you to extend it);
• Any subsequent fiscal year should be 12 months long;
• Whether the company is part of a group of companies;
• How to maximize the tax exemptions in the New Start-up Tax Exemption Scheme.

2.3. Examples of a Singapore FYE

Choosing what date to set as your company's financial year end is entirely up to your business decision. Some common data business owner use for their company's financial year end are

• Calendar year: January 1st to December 31st.
• Financial year-ends: March 31st, June 30th, September 30th, or December 31st (There are financial quarter-ends).
• Company's incorporation date: e.g., June 15th to June 14th of the following year).
• Seasonal considerations: Your industry's seasonal cycles (e.g., high-demand holiday season). This is often chosen by travel agents, flower shops, etc
• Business cycle alignment: Your unique business cycle, considering project timelines, contract renewals, and industry fluctuations.

2.4. How to choose the right financial year end date for tax optimization?

To maximize company tax exemptions, you should not pick any date for your company. 

Instead, it's best to make your first year of assessment as long as possible within the first 12-month period. This strategy helps you get the most benefit from tax exemption scheme for new startups.

For example,

1. Your company’s incorporation date: 10 June 2023;
2. Add one year to it: 10 June 2024;
3. Subtract a month: 10 May 2024;
4. Pick the last day of that month as your company’s FYE: 31 May 2024.

2.5. How to change your financial year end?

If you wish to change your FYE, you should notify ACRA, VIA BizFile+ online, section”Change of Financial Year End” and there is no fee for this change.

You can only adjust the FYE for the current year or the previous one.

You cannot change your FYE if 

• The deadlines for holding an AGM, filing annual returns, or sending financial statements have already passed;
• You wish to change FYE in the past five years;
• The change will make your financial year longer than 18 months.

You need to prepare the following information to make a change:

1. Company UEN;
2. Revised financial year-end date
3. Financial year period
4. Prior approval from Registrar, if applicable

2.6. What do you do after your company’s financial year end?

The choice of a financial year end significantly affects several important deadlines for a business. These include:

Statutory obligations

1. Annual General Meeting (AGM): within 6 months from the end of FYE;
2. Annual Return (AR): within 7 months from the end of FYE;
3. Please note that if you have a corporate shareholder, you will have to file the XBRL documents with your annual return.

For all other transactions, the filing deadlines vary according to the Companies Act but generally, it is within 14 days for most transactions.

In addition, if there are any changes in particulars, please inform your service provider as soon as possible as the change has to be filed within 14 days.

Tax

1. Estimated Chargeable Income (ECI): within 3 months from end of FYE (unless exempted);
2. Tax filing: For each financial year, the tax return is due the following year around 30 November.

If you outsource these tasks to a service corporate provider, they will handle everything for you on time.

3. Introduction to Singapore’s year of assessment

The year of assessment or YA, also known as the tax year (taxable year, taxpayer year), is the period when tax residents and companies have to report and pay their income taxes to IRAS.   

The income tax is calculated and charged based on the income earned in the preceding financial year or the “basis period”.

This period follows your company's financial year end.  For example, the Year of Assessment 2024 is for income earned from 1 Jan 2023 to 31 Dec 2023.

4. How can we help you comply with requirements for your Singapore company fiscal year?

Choosing your company fiscal year is important. Using the knowledge from our guide, you can choose the right financial year end date that best fit your business plan.

This is the first step in your company management, since your FYE determine many annual your company has to comply with. 

With 10+ years of helping entrepreneurs, we provide expert support to help you manage your company during important deadlines.

• Compute tax for ECI;
• Prepare Form C-S/C for the Corporate Tax Return;
• Prepare financial statements and full accounting report;
• Comply with AGM;
• File your AR effectively.
• And more

Reach out to us now if you need assistance

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• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

5. FAQs about Singapore fiscal year

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