Financial Year. Financial Year End. Year of Assessment

If you’ve ever come across terms like FY, FYE, and YA and felt confused, you’re not alone.

What is FY (Financial Year)?

FY stands for Financial Year, which is a 12-month accounting period used by businesses for financial reporting and tax purposes. Unlike the calendar year (which runs from January 1 to December 31), a financial year can start and end at any point during the year, depending on the company’s preferences or regulatory requirements.

For example:

• A company might have a financial year running from April 1 to March 31.

• Another might choose July 1 to June 30.

The choice of financial year often depends on the nature of the business, industry practices, or legal requirements in the country where the business operates. In some countries, like the United States, the financial year is often referred to as the fiscal year.

What is FYE (Financial Year End)?

FYE stands for Financial Year End, which is the final day of the accounting period.

This is the date on which the company “closes its books” for the year and prepares its financial statements. Common FYE dates include:

• 31 March

• 30 June

• 30 September

• 31 December

The FYE is a critical date because it triggers several important deadlines for compliance and reporting.

In Singapore:

• AGM (Annual General Meeting): Must be held within 6 months after the FYE.

• Annual Returns: Must be filed within 7 months after the FYE.

  These deadlines ensure that companies maintain transparency and accountability to their shareholders and regulatory authorities.

What is YA (Year of Assessment)?

YA stands for Year of Assessment, which is the tax year in which your income tax is calculated and charged.

In Singapore, the YA is based on the income earned in the preceding financial year.

This means, for example, if your financial year runs from January 1 to December 31, 2023, the income earned during this period will be assessed in the YA 2024.

In Singapore, the tax filing deadlines are as follows:

• ECI (Estimated Chargeable Income): Must be filed within 3 months after the FYE.

• Form C/CS: Must be submitted by November each year, based on the preceding year’s income.

Understanding FY, FYE, and YA is essential for business owners to ensure compliance with regulatory requirements and avoid penalties. By understanding what they mean and how they apply to your situation, you can navigate financial reporting and tax compliance with confidence.