Change of Financial Year End in Singapore
The Financial Year End (FYE) of a company refers to the end of the company’s accounting period, which typically recurs after every 12 months.
Every company in Singapore has to determine its own FYE because it can fall on any day within the year and not necessarily on 31 December.
What’s the Process of Changing Your Company’s Financial Year End?
If your company already started operations and you wish to change your FYE, you must start by notifying ACRA of your decision to make this change. This must be done through the BizFile+ website under the “Change of Financial Year End” transaction. You will not be charged for the transaction.
Generally, you are only allowed to change the FYE for the current or immediate previous financial year. ACRA does not allow companies who have already passed the statutory deadlines for the holding of the Annual General Meeting (AGM), filing of Annual Returns or sending of financial statements.
In addition, ACRA must approve the change of FYE if it will make your company’s financial year to be longer than 18 months or it’s barely 5 years since you changed your company’s FYE.
Why Would Your Company Change its Financial Year End?
How Can You Determine the FYE of Your Singapore Company?
Generally, according to section 198(1)(a) CA, the company’s first financial year starts on the company’s date of incorporation. Different sets of rules on determining a company’s FYE will apply depending on whether your company was incorporated before, on or after, 31 August 2018:
Companies incorporated on or after 31 August 2018
Companies incorporated before 31 August 2018
· The company’s first financial year starts on the company’s date of incorporation, and ends on the date provided to ACRA during incorporation.
· The first financial year must not be longer than 18 months from the date of incorporation.
· The last day of the company’s first financial year is the date provided to ACRA in the annual return or notification that the company had last filed with ACRA.
· If the company has not filed such an annual return or notification, the company’s last day of the financial year will be the anniversary of the company’s date of incorporation.
· FYE is deemed to be the anniversary of the FYE date previously notified to the Registrar.
· FYE is deemed to be the anniversary of the FYE date as determined using the rules above.
Your company’s FYE defines the end of your accounting period, after which financial report will be prepared for purposes such as filing annual returns with ACRA and filing corporate tax returns with IRAS. By default, ACRA assigns a company’s financial year end to be exactly a year from its date of incorporation.
Can Tianlong Assist You with Changing Your Company’s Financial Year End?
We can help you change your company’s financial year end with ease. The least we need is your Company’s registration number, Company’s name, Revised Financial Year End Date, and Financial Year Period. Contact us TODAY!
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You will get a month’s worth of bookkeeping. Whether or not you continue with us, your reports for the month are yours to keep.