Every Singapore-incorporated company must decide on a Financial Year End (FYE) — the date on which its accounting period concludes. This date determines the company’s financial reporting cycle, the deadlines for Annual General Meetings (AGMs), Annual Return (AR) filing, and corporate income tax submissions to the Inland Revenue Authority of Singapore (IRAS).
Choosing an appropriate FYE from the start is crucial for regulatory compliance and operational efficiency. Understanding how to set and, if necessary, change your financial year can help you avoid penalties and streamline tax planning.
What is a Financial Year End (FYE)?
The Financial Year End marks the closing date of a company’s accounting period. It is the cut-off point for preparing financial statements that summarise the company’s performance for that year.
For example, if a company’s FYE is 31 December 2024, its financial year covers 1 January 2024 to 31 December 2024.
Default FYE for Newly Incorporated Companies
When a company is first incorporated, ACRA automatically assigns a default financial year end falling on the last day of the month of incorporation, unless the company specifies otherwise.
For example:
- A company incorporated on 10 July 2024 will have a default FYE of 31 July 2025, covering a period of more than 12 months (the first financial year may be longer than one calendar year).
The company can, however, choose a different FYE during or after incorporation if it aligns better with its business cycle or group reporting requirements.
How to Decide on a Suitable Financial Year End
Companies are free to choose any date as their FYE, but it should be consistent with the nature and needs of the business. Consider the following factors:
- Business Seasonality
Choose an FYE that reflects your company’s operating cycle — for instance, retailers often close their accounts after peak sales seasons. - Group Alignment
If your company is part of a corporate group, aligning its FYE with the parent or holding company simplifies consolidation and reporting. - Administrative Convenience
Avoid setting FYE dates too close to statutory holidays or major events to ensure enough time for closing accounts and holding AGMs. - Tax Planning
A well-chosen FYE can optimise tax reporting and cash flow planning. For example, a December or March year-end often aligns conveniently with IRAS’s tax assessment cycles.
Filing Deadlines Based on FYE
Once your FYE is established, key statutory deadlines are tied to it:
- Annual General Meeting (AGM): Must be held within 6 months after FYE.
- Annual Return (AR): Must be filed with ACRA within 7 months after FYE.
- Corporate Income Tax Filing:
- Estimated Chargeable Income (ECI) – within 3 months after FYE.
- Corporate income tax return (Form C/C-S) – by 30 November of the following year (if e-filed).
Setting the Financial Year End (FYE)
When incorporating through BizFile+, you can specify your first FYE in the application form. If you do not indicate one, ACRA assigns the default FYE as described earlier.
You may choose a first financial year longer than 12 months, but subsequent financial years must not exceed 12 months each.
Example 1:
Company incorporated on 1 March 2024
→ Sets FYE as 31 March 2025 (first year = 13 months)
→ Subsequent FYEs will fall on 31 March each year
Example 2:
Company incorporated on 10 August 2024
→ Accepts default FYE of 31 August 2025
Changing the Financial Year End
Companies can change their FYE at any time through BizFile+, subject to certain restrictions.
Key rules for changing FYE:
- Board Resolution Required
The change must be approved by the company’s board of directors before submission to ACRA. - Filing via BizFile+
Log in to BizFile+ → Select “Change of Financial Year End” → Indicate the new date and provide justification. - Notification Deadline
The change must be filed before the due date for filing the company’s annual return of the current financial year. - 12-Month Rule
Financial years (after the first) cannot exceed 12 months, except under special circumstances approved by ACRA. - Frequency Limit
A company cannot change its FYE more than once in a 5-year period unless there is a valid reason (e.g. aligning with a parent company’s reporting cycle or significant business restructuring). - Special Conditions
Companies with subsidiaries or group structures must ensure consistency across entities when making changes.
Example:
A company incorporated on 15 May 2023 initially sets FYE as 31 May. Later, to align with its overseas parent, it requests to change FYE to 31 December. The change can be approved if:
- The company files the change before its annual return due date, and
- The new FYE does not create a financial year exceeding 18 months in total.
Compliance Implications of Changing FYE
Changing your financial year affects all compliance timelines, including:
- AGM and Annual Return filing deadlines.
- Tax filing schedules with IRAS.
- Audit and accounting cycles.
It is advisable to coordinate the change with both your corporate service provider and accountant to ensure consistency and prevent missed deadlines.
Best Practices When Deciding or Changing FYE
- Plan your first FYE strategically to minimise future changes.
- Align your FYE with that of related companies to simplify group consolidation.
- Notify your accountant and secretarial agent before changing your FYE.
- Always check statutory deadlines after any change to avoid compliance breaches.
- Avoid frequent changes — ACRA may reject unjustified alterations.
Setting and maintaining a suitable Financial Year End helps your company remain compliant, improves financial planning, and supports long-term transparency. A well-aligned fiscal calendar simplifies annual reporting, tax compliance, and business management — allowing you to focus on growth instead of administrative deadlines.