TaxSavvySG

Choosing a financial year end in Singapore

Which year end should my new Pte Ltd pick?

The situation

The year end drives the ECI deadline (3 months), AGM (6 months) and annual return (7 months).

The law

  • Income Tax Act 1947: Estimated Chargeable Income: ECI filed within 3 months after financial year end; waiver if revenue up to S$5 million and ECI nil
  • Sec 197, Companies Act 1967: Annual return filed within 7 months after financial year end

What it means for you

A first financial period can be up to 18 months, which can stretch the start-up tax exemption usefully, but check IRAS rules on how YAs are counted. A 31 December year end means ECI by 31 March and annual return by 31 July. Choose a date that matches your quiet season.

What to do

  1. Map busy and quiet months.
  2. Check the YA effect of a long first period.
  3. Pass a resolution.
  4. Diarise the deadlines.

We can do this for youIncorporate a Singapore private limited company and complete first-month set-up: SGD 1,800

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