Singapore
  • Hong Kong
  • UK
  1. Osome Blog Singapore
  2. Choosing a Financial Year End Date for My Singapore Company

Choosing a Financial Year End Date for My Singapore Company

Choosing a Financial Year End Date for My Singapore Company

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

NewCampus Manages Documents Worry-Free With Osome’s Corporate Secretary
Seller Spotlight

NewCampus Manages Documents Worry-Free With Osome’s Corporate Secretary

New Campus had set up its operations in Dubai for around 5 years, working with a traditional company secretary company. When they wanted to set up their company in Singapore, venture capital fund 500 startups recommended that they try Osome.

Ajay Experiences Paper-free Accounting for his Startup Tinvio
Seller Spotlight

Ajay Experiences Paper-free Accounting for his Startup Tinvio

When Tinvio started operations to build a communication and commerce platform for merchants and suppliers, they were looking for an annual corporate secretary and monthly accounting service so that they could focus on growing their business while upholding corporate diligence.

How Does Fulfillment and Storage Impact Your Bottom Line?
E-commerce

How Does Fulfillment and Storage Impact Your Bottom Line?

So, you have reached a turning point in your company’s growth and feel like you need to focus more on order processing and fulfillment. That’s great because that will allow you to grow your sales.

An E-Commerce Seller's Introduction to Currency Risk
E-commerce

An E-Commerce Seller's Introduction to Currency Risk

If you trade in a stronger currency, you will have to pay more for fewer items, which can squeeze your profit margins and make competing with other businesses difficult for you. It can also affect your ability to make profitable investment opportunities.

This is How Amazon's Supply Chain Works
E-commerce

This is How Amazon's Supply Chain Works

In order for Amazon to run at full capacity, a wide range of functions must work together. Because of this, Amazon's supply chain plays such an important role in its success and operation.

A Guide to Choosing Your E-commerce Store Name
E-commerce

A Guide to Choosing Your E-commerce Store Name

Choosing a good brand name once you have registered your company is important for an e-commerce business store because it will grow to be the brand that users identify with.

How To Choose the Perfect Domain Name for E-commerce
E-commerce

How To Choose the Perfect Domain Name for E-commerce

A domain name is an identity and at the same time, the address for customers to get to e-commerce businesses’ stores online. Thus, choosing the perfect domain name is important for your e-commerce business.

Why You Should Protect Yourself As You Build Your Business
Running My Business

Why You Should Protect Yourself As You Build Your Business

Despite the measures that the Government had implemented to assist in holding back retrenchments and offsetting employees’ wages, the pandemic and its impact are enduring. All the more reasons for you to get insurance now.

13 Best Co-Working Offices in Singapore
Entrepreneur's Bootcamp

13 Best Co-Working Offices in Singapore

Trying to beat the work-from-home slump? Give your productivity a much-needed booster at an amazing co-working space of your choice. From stunning views, amenities, to convenient central locations, you’d surely find a space to get your inspiration flowing.

How To Convert A Private Limited Company Into A Public Limited Company
Secretary

How To Convert A Private Limited Company Into A Public Limited Company

While the public limited company structure shares some similarities with the private limited company structure, its features make it more ideal for large businesses.

Understanding Customer Lifetime Value for Online Sellers
Running My Business

Understanding Customer Lifetime Value for Online Sellers

Once you establish a customer lifetime value, you'll realize that acquiring a new client is much more costly and time-consuming than selling to existing clients.

A Guide to Calculating Taxes for Freelancers and Self-Employed
Tax

A Guide to Calculating Taxes for Freelancers and Self-Employed

During tax season, it can get increasingly frustrating or confusing for freelancers and self-employed people as they are not clear about their tax obligations.

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?