The company's financial year

The financial year refers to the year in which the company's financial statements are executed. Local companies in Singapore have the freedom to choose the end of their financial year. In other words, local companies can choose any month of the year as the end of their financial year. Generally, the first financial year of a company cannot exceed 18 months, and each subsequent financial year is calculated as 12 months. If the company determines the end of its first financial year, it cannot be changed within the next two financial years.

tips

Usually, some companies will set the financial year of the subsidiary company to the same financial year as the parent company, which can facilitate the subsequent financial accounting and consolidation. If the end time of the first financial year is more than 18 months, there is no problem in accounting and annual audit, but when filing taxes, the Singapore Inland Revenue Authority (IRAS) will split the first financial year into two tax years.