Can I Change My Company’s FYE in Singapore?

All Singapore-based companies need to determine the date of their financial year end (FYE) during incorporation. That said, wanting to change the company’s FYE is far from unusual here in Singapore. Instead, it might be more common than you think. It’s essential to have a deliberately strategic date so that the company stays aligned with its ongoing goals and operations.

Even though changes can be made to a company’s FYE, there are still steps to comply with to ensure everything is done according to procedures. This article will keep you updated on why FYE can be tricky to manipulate and how you can go about it to make the necessary changes.

What Exactly Is FYE?

A financial year end is the end of a company’s accounting period. It is the date on which a company’s financial statements are prepared, which typically includes an income statement, a balance sheet, statement of cashflow and notes to financial statements.

The FYE is important because it marks the end of a company’s reporting period, and the beginning of the next reporting period. It is typically set by the company’s board of directors, and may coincide with the end of a calendar year, or it may be set at some other time during the year.

The FYE is important for tax purposes, as companies are required to file tax returns based on their financial year end. It is also important for shareholders and investors, who use the financial statements to evaluate the financial health of the company and make investment decisions.

Companies may change their FYE for either the current financial year or the immediate previous financial year.

Companies are allowed to change the date of their FYE so long as the statutory deadlines have not been missed for the holding of Annual General Meeting, lodgement of Annual Return or sending of financial statements to shareholders.

Lastly, companies must obtain the approval of ACRA for the change of FYE if:

  • The change in FYE will result in the company’s first FYE to exceed 18 months
  • There has been a prior change in FYE on or after 31 August 2018 for a financial year ending on or after 31 August 2018 and it is within 5 years from the last change in FYE.

 

Steps to change the company’s FYE

The first step to changing your company’s FYE should be to ACRA of the change. It goes without saying that the Registrar should be kept in the loop of any changes made to your company’s FYE. This can quickly be done through the BizFile+ website, where all you’ll have to do is fill in the necessary information, such as the current and proposed FYE dates, as well as provide a reason for the change. There is no lodgement fee for the change in FYE. You should receive confirmation from ACRA once the change has been processed. It is important to note that you must obtain the consent of most of your company’s directors and shareholders before changing the FYE. 

And that’s it! You’re now well informed of what needs to be taken care of before making any changes to your company’s FYE and the things that come after establishing said changes. Should you have any further questions on changing FYE, you are encouraged to seek the advice of a qualified accountant or lawyer who will ensure you’re well-briefed on everything you should know.