In Singapore, the Financial Year End (FYE) refers to the last day of a company’s accounting period. This is the date on which the company closes its books to prepare financial statements and determine taxable profits.

When incorporating a new company, you must decide on your first FYE. It can be any date within 18 months from your incorporation date. For example, if your company is incorporated on 1 January 2024, your FYE can be anytime up to 30 June 2025.

Most companies choose 31 December or 31 March for convenience and alignment with statutory deadlines or group reporting.

Once set, your FYE determines important statutory and tax filing obligations.

Key Deadlines Tied to FYE

Your chosen FYE affects the timeline for several critical compliance requirements:

• Estimated Chargeable Income (ECI) - You must file your ECI with IRAS within 3 months after the FYE, unless you qualify for a waiver. ECI is an estimate of the company’s taxable profits for the Year of Assessment (YA).
• Annual General Meeting (AGM) - If you are a listed company, you must hold an AGM within four months after your company’s FYE. If you are a private company, you must hold an AGM within six months after your company's.
• Annual Return (AR) - You must file your Annual Return with ACRA within 1 month after AGM.

Year of Assessment (YA) and FYE

The Year of Assessment (YA) is the year in which income earned in the preceding financial year is assessed for tax.

For example:

If your FYE is 31 December 2024, your YA is 2025.

Income from 1 January 2024 to 31 December 2024 will be assessed in YA 2025.

This linkage is crucial when planning tax filings, applying tax exemptions, and meeting compliance deadlines.

Start-Up Tax Exemption Scheme

Singapore offers a start-up tax exemption scheme to support new companies in their first 3 YAs.

Under this scheme, qualifying companies can enjoy the following tax exemptions on their chargeable income each YA:

• 75% exemption on the first $100,000 of chargeable income
• 50% exemption on the next $100,000 of chargeable income

This results in a maximum exemption of $125,000 per YA.

Changing Your FYE

Companies must notify the Registrar of any change in their FYE. They may change the FYE for the current or immediate previous financial year.

However, companies cannot change their FYE if statutory deadlines for the following have passed:

• Holding of Annual General Meeting (AGM)
• Filing of Annual Return (AR)
• Sending of financial statements

The Registrar's approval to change the FYE will be required if:

• The change in FYE will result in a financial year of more than 18 months; or
• It is within 5 years from the end of that previously changed FYE.

Choosing and maintaining your FYE is a fundamental part of managing your company’s statutory obligations and tax planning in Singapore. A clear understanding of how FYE affects deadlines, the Year of Assessment, and eligibility for tax exemptions can help you avoid penalties and optimize tax benefits.

New Ark Consulting provides a one-stop customized service, including company registration, accounting and taxation, overseas relocation, and comprehensive consulting services. Feel free to contact our professional team anytime via WhatsApp at +65 8830 8077 for more information.

Disclaimer

This article is written by New Ark Consulting and is for reference only. It may contain information that is proprietary to the Company and may not be published, distributed, reproduced, or redistributed, in whole or in part, without the prior consent of the Company. The article itself is not an offer or invitation to set up a family office, trade any investment product, establish a trust or establish a specific corporate structure or establish any legal relationship. Nor does it in itself constitute advice or a recommendation regarding wealth planning structures or corporate advice. It is for general information only and does not take into account specific investment objectives, investment experience, financial situation and the specific needs of any particular person. You should approach any potential investment or proposed wealth structure with caution. You should independently evaluate and consider the suitability of such products or structures, taking into account your specific objectives, investment experience, financial situation and/or specific needs (including your own wealth management needs and circumstances). Please obtain independent financial, legal and/or tax advice from professional advisors as required before proceeding with any investment, purchasing any investment product or building your wealth. Investments in financial instruments or other products carry significant risks, including the possibility of loss of the principal invested. Past performance does not guarantee or represent future results. Neither New Ark Consulting nor any of its officers shall be liable for any damages (whether direct, indirect or consequential) arising out of or in connection with the use of this article. 
  
While reasonable efforts have been made to ensure that the content of this article has been obtained or derived from sources believed by the Company to be reliable, New Ark Consulting has not independently verified the accuracy of such sources. New Ark Consulting's products, services or product packages may be subject to relevant laws and regulations and may be changed from time to time without prior notice. Neither New Ark Consulting nor its associates, employees, agents and representatives make any representations, warranties or guarantees, express or implied, as to the accuracy, timeliness or completeness of the information, data or current conditions referred to in this article. No liability is accepted for any direct or indirect loss or damage arising out of or in connection with the use of the content of this document. New Ark Consulting and its affiliates may publish other reports, analyses or other documents that may express opinions that differ from those contained herein, and all opinions expressed in all reports, analyses and documents are subject to change without notice.