Changing Your Company’s FYE After Incorporation in Singapore? Here’s a Step-by-Step Guide

In the dynamic world of business, circumstances can change rapidly, and sometimes, it becomes necessary to adapt. One such adaptation might involve changing your company’s Financial Year End (FYE) in Singapore.

Whether it’s for better aligning with your business cycle or optimising tax exemptions, altering your FYE is possible. In this comprehensive guide, we’ll walk you through the process of changing your company’s FYE after incorporation in Singapore.

What makes the FYE of a company very important?

Choosing the FYE holds significant importance as it determines the annual deadlines for your corporate filings and tax obligations.

Why Change Your Company’s FYE?

Before we dive into the process, it’s crucial to understand the reasons why you might consider changing your FYE. Here are some common scenarios:

1. Business Cycle Realignment: Your business may have evolved, and your FYE no longer aligns with your operational cycles. Adjusting the FYE can streamline accounting processes.
2. Tax Optimisation: Changing your FYE strategically can help maximise tax exemptions, especially for startups in Singapore.
3. Aligning with Holding Companies: If your company is a subsidiary, aligning your FYE with your holding company can simplify tax filing and compliance.

Can a company have a non-12-month financial year? Yes, accounting periods can be 12 months or over 52 weeks. ACRA must be notified in advance to avoid annual approval requirements.

Step-by-Step Guide to Changing Your FYE

Changing your FYE in Singapore is a manageable process if you follow these steps:

1. Notify ACRA:

• To initiate the change, visit the BizFile+ website, and select the “Change of Financial Year End” transaction.
• This transaction is free of charge, making it accessible for businesses of all sizes.
• Documents required:
  1. Company UEN
  2. Revised Financial Year End Date
  3. Financial Year Period
  4. Prior approval from Registrar, if applicable

2. Pass a Board Resolution:

• Your company’s board must pass a resolution to approve the change in FYE.
• Document this resolution in the company’s records for compliance.

3. Update IRAS:

• Notify the Inland Revenue Authority of Singapore (IRAS) of the FYE change.
• Visit the mytax.iras.gov.sg portal to update your corporate profile or contact details using the “Update Corporate Profile/ Contact Details” e-service.

4. Plan for Transition:

• Coordinate with your accounting and finance teams to ensure a smooth transition to the new FYE.
• Prepare for potential adjustments in your financial statements and reporting processes.

5. Observe Statutory Deadlines:

• Make sure you don’t miss any statutory deadlines for holding Annual General Meetings (AGMs), filing Annual Returns, or submitting financial statements.
• Companies that have passed these statutory deadlines are not permitted to change their FYE.

6. Seek ACRA’s Approval if Necessary:

• If your proposed FYE change would result in a financial year lasting more than 18 months or if you’ve previously changed your FYE within the last five years, you’ll need ACRA’s approval.

Summary

Changing your company’s FYE in Singapore is a strategic move that can help your business adapt to evolving needs and opportunities. By following this step-by-step guide and understanding the importance of compliance and timely notification, you can make the transition smoothly and ensure your company’s financial year aligns with your business goals.

Time is money. Let the pro team at Counto take care of your compliance. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.