The financial year is the executive year of the company’s financial settlement. In some countries, the financial year is stipulated to end on December 31 of each year. In some countries, the company is encouraged to end the financial year in March, June, September, or December each year. Companies incorporated in Singapore are free to choose the end of the financial year. Therefore, the financial year of the company can end in any month of the year. Normally, the first financial year does not exceed 18 months. The following financial year is calculated in 12 months. If the company has determined the end time of the financial year, it cannot be changed within the next 2 financial years.
Normally, if a company is registered in a particular month, the financial year ends before the month of the second year. For example, if a company is registered on April 18, 2020, the first financial year of the company can end on March 31, 2021. Then the next two financial years will end on March 31, 2022 and March 31, 2023. Some companies will choose to extend or shorten the first financial year in order to coincide with the parent company’s financial year. For example, the parent company’s financial year ends on August 31, 2021. Singapore companies are registered on May 19, 2020, and the end of the first financial year can be selected on August 31, 2021. Thus, the first financial year for Singapore companies is 16 months (15 months and 13 days). It is worth noting that if the first financial year is more than 18 months. There is no problem at the time of accounting and annual review. However, at the time of tax declaration, the Inland Revenue Department will split the first financial year into two tax years. The first tax year is from May 19, 2020 to August 31, 2020. The second tax year is from September 1, 2020 to August 31, 2021.
Singapore FOZL Group Pte. Ltd.
Singapore Accounting and Corporate Regulatory Authority licensed corporate advisory firm
Singapore company registration
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