Financial Year in Singapore: A Guide for Businesses

If you’re starting a company in Singapore, one of the first things you’ll need to decide is your company’s financial year.

This is the 12-month period your business uses to prepare accounts, track performance, and meet compliance requirements. The last day of that period is called the financial year end (FYE), and it plays a big role in setting deadlines for tax filing, annual returns, and shareholder meetings.

In this guide, we will explain everything you need to know about the financial year in Singapore, including:

✅What the financial year is

✅Why it’s important for Singapore businesses

✅How to pick the right financial year-end

✅The rules for changing it if needed.

What Is a Financial Year in Singapore?

A financial year in Singapore is typically a 12‑month period used to prepare accounts, with the final date called the financial year end (FYE). Companies are allowed to choose their FYE—31 March, 30 June, 30 September, and 31 December are the most common.

But don’t mistake flexibility for irrelevance. The date you pick does more than dictate filing deadlines with IRAS and ACRA. It determines whether your tax obligations fall in a cash‑rich or cash‑tight season, whether your auditors are available or overbooked, and whether your financials can be easily compared with industry peers. 

Why Financial Year Matters to Businesses

Too many directors treat FYE as a box‑ticking exercise when it’s actually one of the first strategic decisions in corporate finance. An FYE sets compliance timetables, which are when you must file corporate tax, hold your AGM, and lodge annual returns. But the deeper reality is:

• Tax Planning: Depending on revenue cycles, a well‑timed FYE can smooth taxable profits across periods or defer obligations strategically.
• Investor Signalling: Investors often expect a year-end in December. Choosing something else may be logical internally, but could complicate how you’re benchmarked externally.
• Operational Load: Closing accounts right after your busiest sales period sounds efficient. In practice, it can overstrain finance teams who are still reconciling peak‑season transactions.

How to Decide on Your Financial Year-End

Conventional advice will tell you to pick a common date, follow your parent company, and avoid peak seasons. However, that’s not the best way. Here’s how to decide your FYE:

• Audit Market Timing: December FYE means competing with thousands of companies for the same audit firms. Choosing an off‑cycle FYE can save time, stress, and fees.
• Cash Flow: If you rely on seasonal revenue (say, tourism or retail), aligning FYE right after a high‑revenue period may create a healthier balance sheet snapshot when reporting to banks.
• Cross‑Border Integration: Subsidiaries often mirror parent companies’ FYE for consolidated reporting, but this can sometimes lock smaller entities into suboptimal cycles.

Remember to ask yourself, “What FYE gives my company the strongest operational and financial positioning?”

Can I Change My Financial Year-End?

Yes, you can change your company's financial year-end (FYE), but ACRA has clear rules. Any change must be reported to the Registrar, and it can apply to the current year or the immediately previous one. However, a change is not allowed if the deadlines for holding the AGM, filing the annual return, or sending out financial statements have already passed.

In some cases, ACRA’s approval is needed. This happens if the new FYE would make the financial year longer than 18 months, or if the company has already changed its FYE once on or after 31 August 2018 and is attempting another change within five years.

To make the change, you must file a notification through BizFile+, ACRA’s online portal. A director or company secretary usually submits the notification, and if approval is required, the request and supporting reasons are filed in the same submission.

Final Note

Your financial year-end isn’t just a formality. It sets the pace for tax filing, annual returns, and how you plan ahead. Picking a date that fits your business makes life a lot easier, while keeping an eye on deadlines saves you from costly penalties.

If you’re starting fresh or thinking about a change, take a moment to choose an FYE that works for your business. A little planning now can save a lot of hassle later.