TaxSavvyMY

Choosing the first financial year end

Which financial year end should my new company choose?

The situation

You can choose any date for the first financial year end, within the period the law allows. That date drives your accounts, annual tax return and audit or exemption timeline.

The law

  • Sec 258, Companies Act 2016: Financial statements circulated to members within 6 months of the financial year end
  • Sec 77A, Income Tax Act 1967: Companies and LLPs furnish a return within 7 months after the accounting period ends

What it means for you

A December year end aligns with the calendar but clashes with peak season at accounting firms. A year end close to your quiet season eases stock counts. A first period of more than 12 months is possible within limits, but it changes CP204 and capital allowance timing. Decide before the first board meeting.

What to do

  1. Map your busy and quiet months.
  2. Check how the date affects CP204 and Form C deadlines.
  3. Pass a board resolution on the year end.
  4. Diarise the 6-month and 7-month deadlines.

We can do this for youIncorporate a Sdn Bhd and complete first-month set-up: MYR 900

Related