CHANGE OF FINANCIAL YEAR END SINGAPORE
What is Financial Year End ?
Financial year end refer to accounting period of your company. Normally is consist of 12 months .
When to fixed Company’s year end ?
If you incorporated before 31 August 201 8
- Financial year end will be deemed to be the anniversary of the date of the company incorporation
If you incorporated after 31 August 201 8
- Company is required to notify ACRA of their financial year end upon incorporation
Why financial year end is important ?
In IRAS’s terms financial year end refer to year assessment . And it based on basic period which generally a 12 months period preceding the year assessment
Example :
Company Incorporation date is 4 September 2018
Scenario A
Financial year end set on 31 August 2019
1st Year of Assessment : 4 September 2018 till 31 August 2019
2nd Year of Assessment : 1 September 2019 till 31 August 2020
3rd Year of Assessment : 1 September 2020 till 31 August 2021
Scenario B
Financial year end set on 30 September 2019
1st Year of Assessment : 4 September 2018 till 31 December 2018
2nd Year of Assessment : 1 January 2019 till 30 September 2019
3rd Year of Assessment : 1 October 2019 till 31 December 2019
- Yes but only the financial year end date of the current financial year end AND immediate previous year is allowed to be change
- the change in FYE results in a financial year longer than 18 months; or
- the FYE was changed within the last 5 years.
“Please note that making changes in financial year end will change deadline in filing with ACRA”
Example 1 :
Company year end is 31 March 2019
On 31.07.2018, want to change FYE to 30.04.2019
Answer : Year end can be change immediately because NEW regulation only implement on 31.08.2018
On 31.12.2020 Company want change FYE to 1.02.2021
Answer : NOT required to seek ACRA approval. Although this change is within 5 years of the last change of FYE ( 30.04.2019) a change of FYE before the new law takes effect is no taken into consideration
Example 2 :
Com year end is 31 March 2019
On 31.01. 2019 , want to change FYE to 30.04.2019
Answer : NOT required to seek ACRA approval
On 31.12.2020 , want to change FYE to 01.02.2021
Answer : Company must seek ACRA approval because this is the 2nd change within last 5 years of the last change FYE ( 30.04.2019)
Example 3 :
Last AR shown Com year end is 31.03.2019 so its next FYE should be 31.03.2020
On 31.01. 2020 , want to change FYE to 31.12.2020
Answer : Com must seek ACRA approval because this will result financial year end MORE THAN 18 months( from 01.04.2019 to 31.12.2020)
Example 4 :
Last AR shown Com year end is 31.03.2021 so its next FYE should be 31.03.2022
On 10.11.2025 want to change FYE from 31.03.2022 to 31.12.2022
Answer : Com NOT ALLOWED to do that because it can only change its previous and current financial year end