Singapore
  • Hong Kong
  • UK
  1. Osome Blog Singapore
  2. Financial Year End (FYE) in Singapore

Financial Year End (FYE) in Singapore

As soon as you incorporate new company, you need to decide on your first Financial Year End (FYE). This date will determine when your corporate filings and taxes are due.

What is a Financial Year End in Singapore?

If you own or manage a business in Singapore, your Financial Year End determines when you submit Annual Returns and tax documentation on a yearly basis to comply with the national legislation. In accounting, the time period is called Financial Year, and your corporate filings and taxes have to be submitted at Financial Year End (FYE).

The Financial Year does not have to coincide with the calendar year, which means it can start or end on any day within the year. However, the Financial Year is normally 12 months long - just like a calendar year. So, how do you know when your company’s financial year begins or ends?

How to Determine A Financial Year End For a New Company in Singapore?

Good news is, you’re in charge of setting the dates for your company’s Financial Year and Financial Year End. According to the Accounting and Corporate Regulations Authority (ACRA), common choices by companies include 31 March, 30 June, 30 September or 31 December.

According to the Singapore Companies Act, a Financial Year normally begins on the day of company incorporation and ends on the day of your choice. However, your very first Financial Year cannot be longer than 18 months (unless the Registrar allows you to extend it).

Any subsequent Financial Year should be 12 months long; it starts on the day following the end of the previous financial year and ends on the anniversary of your first Financial Year End.

For example, if you incorporate a company on 1st January 2020 and set your first FYE on 31st December 2020, then your subsequent Financial Year starts on the following day - 1st January 2021 - and ends on the anniversary of the first FYE, which would be 31st December 2021.

You must select your company’s FYE at the time of incorporation. It cannot be done after that, so it’s best to make an informed decision on the date.

Upon incorporation, you should also choose if your accounting period covers 12 months or over 52 weeks.

How Long Should My Company’s First Financial Year Be?

While formally your very first Financial Year can be as long as 18 months, the IRAS - national tax administrator - operates with 12 month-long periods. Any period longer than 12 months will be split and assessed as 2 independent periods even if from your point of view, this period is a single Financial Year. It may directly affect the amount of taxes you’ll need to pay, especially if you want to enjoy tax exemption schemes. Thus, you should consider what exemptions you’d like to file for before you set the date of your first FYE.

Can I Change My Company’s Financial Year End?

Yes, but only for the current or previous Financial Year. However, you cannot change your company’s FYE if statutory deadlines for the holding of Annual General Meeting, filing of Annual Returns or sending of financial statements have passed.

You can change FYE by sending a notice to the Registrar, but you’ll need the Registrar’s approval if:

  • if the change in FYE will make your financial year longer than 18 months,
  • if it is the third request for the change of FYE; or
  • if the FYE was changed within the last 5 years (from the last changed FYE).

Where to Ask for Advice About My company’s Financial Year End?

If you have more questions regarding changing the FYE of your company, you don’t have to figure it out yourself. Drop us a question any time of the day and our experienced corporate secretaries in Singapore will get your doubts sorted.

Share this post:

Tips to run your business smarter.
Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

You might like it

E-commerce

When Should I Hire An Accountant For My E-commerce Store in Singapore?

Starting an online business is an exciting journey. According to the Singapore Department of Statistics, online retail sales made up 15.2% of the retail trade in September 2021.

E-commerce

How To Upsell to Your E-commerce Customers

We are inundated daily with countless ads throughout our day, both online and offline. As an e-commerce store retailer, one of the challenges that you may face is trying to get your products and message across to prospective customers.

E-commerce

Types of Business Models for E-commerce

If you are planning to start a new e-commerce business venture, this is the best time to do it! For seasoned business owners who are thinking of diversifying their business into e-commerce, you are at the right place.

E-commerce

An E-commerce’s Checklist To Prepare for 2021 Holiday Sales

Although the sales period will mean that your customers’ shopping carts will be busier, this also brings about its own set of challenges for your online business. Follow our holiday season checklist to ensure your business is well equipped for the shopper surge.

Accounting

What Important Records Must I Keep As A New Business Owner?

Good business record keeping is crucial, from managing costs for legal, regulatory or tax reasons to simply managing and improving your business. If you are just starting up your business, it might not be the first thing that comes to your mind, but it can help you build a strong foundation.

Running My Business

3 Things To Consider Before Renting Your First Office Space

If you have always been working from home for your small business and are contemplating moving to a bigger space to accommodate your staff and to have a central office location, you may be looking out for office spaces to rent.

E-commerce

Digital Payment Trends For E-commerce Sellers To Know

Today, consumers are switching from traditional payment methods, such as cash, cheque and cards to digital payment. The global pandemic has fuelled this unprecedented shift in the consumer’s behaviour.

E-commerce

Creating an Invoice When Selling on Amazon

This article helps Amazon sellers who are finding out how to create, access and share invoices on Amazon.

E-commerce

12 Ways To Drive More Traffic to Your Online Store

When your website is finally live, you want to share it with as many people as possible. How do you get people to your website and excited about your products and shop from your store?

Government Grant

Wage Support & Rental Relief for Businesses in Singapore’s Stabilisation Phase

Tighter COVID-19 restrictions will be implemented from 27 September to 21 November 2021. Find out what support SG companies can receive from this Stabilisation Phase.

E-commerce

A Design Guide for E-commerce Websites

If you’re looking to improve your e-commerce page and improve sales, you might want to learn the fundamentals of how to design a good website.

Entrepreneur's Bootcamp

Best Practice Invoicing Tips for SMEs

This article will help Singapore-based SMEs get to grips with the best invoicing practices. Take a look at the tips and how-tos to guide you toward being more streamlined and savvy.

Tips to run your business smarter. Delivered to you monthly.

You'll receive a verification email you'll have to open and confirm the subscription.

We’re using cookies! What does it mean?