How to Choose the Right Financial Year-End (FYE) for Your Singapore Company?

In Singapore, companies have the flexibility to choose their own fiscal year end (FYE), thanks to the provisions under the Accounting and Corporate Regulatory Authority (ACRA) and the Companies Act of 1967. This decision, while seemingly administrative, plays a crucial role in shaping a company’s compliance calendar, tax obligations, and financial strategy.

Your selected FYE determines the deadlines for holding the Annual General Meeting (AGM), submitting statutory filings, and fulfilling corporate tax requirements. Given its wide-reaching impact, selecting the right FYE is not merely a matter of convenience—it’s a strategic move that can significantly influence your company’s operations and planning.

This guide explores the key factors to consider when deciding on your company’s FYE and how making the right choice can bring long-term advantages for your business.

What is a Fiscal Year End (FYE)?

A financial year-end (FYE) is the final day of a company’s accounting period. In Singapore, you may choose either a 12-month or a 52-week accounting cycle.

For example, a company starting its accounting period on 1 April 2025 would end its year on:

• 31 March 2026 (if using a 12-month cycle) 
• 30 March 2026 (if using a 52-week cycle) 

The most commonly chosen FYEs in Singapore are:

• 31 March 
• 30 June 
• 30 September 
• 31 December

Fiscal Year vs Calendar Year

While a calendar year runs from 1 January to 31 December, a fiscal year can be any 12-month (or 52-week) period that suits the business. In Singapore, the terms fiscal year, financial year, and accounting year are often used interchangeably.

A company may select a fiscal year that better aligns with its business operations, global reporting requirements, or tax planning strategy.

✅ Tip: For a more detailed breakdown of accounting periods and tax treatment, refer to our guide: ‘Understanding Accounting Period for Singapore Company: What You Need to Know‘

Why is Choosing the Right Fiscal Year End Important?

The choice of FYE determines crucial filing deadlines and impacts your ability to stay compliant with regulatory bodies:

1. Annual General Meeting (AGM) and Annual Return

Private companies must:

• Hold their AGM within six months after their FYE. 
• File their Annual Return with ACRA within seven months after the FYE. 

2. Corporate Tax Filing with IRAS

• Estimated Chargeable Income (ECI): To be filed within three months of the FYE. 
• Corporate Income Tax Return (Form C/C-S): Due by 30 November of the following year.

An optimally selected FYE ensures these deadlines align with internal cycles, allowing sufficient time for accurate preparation and avoiding penalties.

What are the Key Factors to Consider When Choosing Your FYE?

 

1. Tax Planning and Exemptions

Startups benefit from significant tax exemptions in their first three Years of Assessment (YA). To maximise this:

• Ensure your first accounting period is close to 12 months (but not exceeding 12 months for IRAS purposes). 
• Align your FYE to stretch the eligibility period across the most beneficial time frame. 

 

2. Business Cycles and Seasonality

Choose an FYE that reflects the natural rhythm of your business operations. For instance:

• Tourism and hospitality firms may opt for an FYE after peak seasons. 
• Manufacturing companies might select an FYE post-production cycle to simplify inventory audits. 

 

3. Accounting and Audit Efficiency

Avoid peak periods like 31 December or 31 March to:

• Minimise audit fees. 
• Avoid bottlenecks with accounting firms. 
• Allow more preparation time for financial statements. 

 

4. Group-Level and Cross-Border Compliance

For companies with overseas operations or foreign parent companies:

• Aligning the FYE with group entities simplifies financial consolidation and global reporting. 
• Helps comply with differing international fiscal calendars. 

 

5. Statutory and Contractual Deadlines

Ensure your FYE allows adequate buffer time to meet:

• ACRA and IRAS deadlines 
• Internal deadlines linked to loans, investor agreements, or grants 

 

6. Cash Flow and Budget Planning

For companies reliant on seasonal funding or grants:

• Select an FYE that closes after major fund disbursements. 
• Helps present a more accurate picture of financial performance. 

 

7. Industry Norms and Competitor Benchmarking

Matching industry-standard FYEs can:

• Facilitate performance comparisons. 
• Provide better alignment with market expectations. 

For example, many multinational corporations use 31 December as their FYE for consistency in global reporting.

 

8. Changing Your FYE Later

Although you can change your FYE, certain restrictions apply:

• It must be done before the deadline for your next Annual Return. 
• Frequent changes may trigger scrutiny from ACRA or IRAS. 

Be strategic—choose a long-term FYE that supports your growth and compliance needs.

 

9. Future Expansion Plans

A forward-thinking FYE should:

• Align with your vision for international expansion, mergers, or funding rounds. 
• Support scalable reporting and reduce complexity as your business grows.

Changing Your FYE: Step-by-Step Process

ACRA allows you to change your FYE in compliance with the provisions of the Singapore Companies Act and Confirm that your Annual Return due date has not passed.

 

2. Determine Approval Requirements
In some cases, ACRA’s approval is required for changes.

 

3. Board Resolution
Pass a resolution to approve the FYE change.

 

4. Notify Authorities
Submit the change via:

• BizFile+ for ACRA 
• Corporate Tax Portal for IRAS (if applicable) 

 

5. Update All Records
Reflect the updated FYE in your internal and external financial documents.

Conclusion: What’s the Best FYE for Your Business?

Selecting your company’s financial year end is more than a compliance decision—it’s a foundation for strategic financial management, tax efficiency, and business growth. By aligning your FYE with your operational cycles, global structure, and industry practices, you position your business for smoother reporting and better performance insights.

Need help determining the best FYE for your company?

3E Accounting Services is here to guide you. Let us help you make a future-proof choice tailored to your business goals and Singapore’s regulatory framework.

Frequently Asked Questions