IRAS has updated its tax computation guidance to clarify corporate filing requirements where a change in financial year end causes financial periods to span two Years of Assessment (YA).
Singapore’s IRAS has updated its “Preparing a Tax Computation” guidance to explain how companies should determine their tax filing obligations following a change in financial year end. It covers cases where a company’s financial statements extend beyond 12 months and the resulting basis period may fall across two Years of Assessment (YA).
Companies must notify ACRA of financial year-end changes
Companies must notify the Accounting and Corporate Regulatory Authority (ACRA) of a financial year-end change through the Change of Financial Year End digital service at BizFile +. A separate notification to IRAS is not required, as IRAS updates its records based on information filed with ACRA on a weekly basis.
Profit and losses may need to be apportioned
Where financial statements cover more than 12 months because of a change in financial year end, companies may need to apportion and attribute adjusted profit/losses to the relevant YA. The direct identification method should be used by identifying income and expenses attributable to each basis period. Time apportionment may be used where the direct identification method cannot be applied.
Changes within the same YA do not require apportionment
No apportionment is required where the change occurs within the same YA. For example, a change in financial year end from 30 June 2025 to 31 December 2025 requires only one tax computation for YA 2026, based on accounts covering 1 July 2024 to 31 December 2025.
Changes across two YAs require separate tax computations
By contrast, a change across two YA requires separate tax computations. Where the financial year end changes from 31 December 2025 to 31 March 2026, companies must prepare tax computations for YA 2026 and YA 2027, covering basis periods of 1 January 2025 to 31 December 2025 and 1 January 2026 to 31 March 2026, respectively.
ECI filing deadlines apply to each YA
For Estimated Chargeable Income (ECI), the YA 2026 filing was due by 31 March 2026, while the YA 2027 filing was due by 30 June 2026, unless the company qualified for ECI filing waiver.
Waiver available for separate YA 2026 Corporate Income Tax Return
For Form C-S/ Form C-S (Lite)/ Form C, companies seeking to avoid a separate YA 2026 Corporate Income Tax Return must request a waiver through myTax Mail before the 30 November 2026 filing deadline. The request must state the previous and current financial year end and the YA for which the waiver is sought.
Waived returns must be filed together for YA 2027
Companies granted the waiver must then file the Corporate Income Tax Returns for YA 2026 and YA 2027 together as part of the YA 2027 Corporate Income Tax Return by 30 November 2027. For Form C, the tax computation, financial statements, detailed profit and loss statement and other supporting documents for both YA must also be submitted with the YA 2027 return.
