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Financial Year End (FYE) and Year of Assessment (YA) Singapore

Understanding Singapore Financial year end (FYE) and Year of Assessment (YA)

What is Financial year end (FYE)? Financial year end (FYE) refers to the completion of a one-year or 12-month accounting period. Singapore company has the option not to close their…

What is Financial year end (FYE)?

Financial year end (FYE) refers to the completion of a one-year or 12-month accounting period. Singapore company has the option not to close their business financial year end on 31 December.

What is Year of Assessment (YA)?

Year of Assessment (YA) refers to the year in which the income tax is calculated and charged. The assessment is for the income earned in the preceding year.

Basis period for any year of assessment refers to the period on the taxable profits for that year to be assessed.

Ex. An individual set up Co A Pte. Ltd. on 1 Jul 2019. Co A Pte Ltd has the option to choose 1st financial year end as follows :
31 December 2019 or
30 June 2020

If Co A Pte Ltd adopts 1st FYE 31.12.2019, the basis period of their taxable profits will be assessed from 01 Jul 2019 to 31 December 2019. The Year of assessment falls under YA 2020.

However, if Co A Pte Ltd opts for 1st FYE 30.06.2020, the basis period of their taxable profits will be assessed from 01 Jul 2019 to 30 June 2020. As such the year of assessment falls under YA 2021.

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