Fiscal year

In Afghanistan, the fiscal year was changed from 21st or 22 March – 20th or 21 March (1 Hamal – 29/30 Hoot) to 21 – 20 December (1 Jadi – 30 Qaws) in 2011.[10] The fiscal year runs with the Afghan or Solar Hijri calendar, because of the differing cycle of leap years in the Gregorian and Afghan calendars, there can be slight differences in the start date of fiscal (and calendar) years. As shown in the chart below, leap years will coincide in 2020 and 2024 but will desynchronize with the Gregorian calendar having a leap year in 2028 as opposed to the Afghan calendar's leap year of 2029.

Correspondence of Solar Hijri and Gregorian calendars (Solar Hijri leap years are marked *)[11]

In Australia, a fiscal year is commonly called a "financial year" (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2023 is the 12-month period ending on 30 June 2023 and can be referred to as FY2022/23. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[8] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[13] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[13]

The Financial year is split into the following four-quarters[14]

In Austria, the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.[15]

In Belarus, the fiscal year is the calendar year, 1 January to 31 December.[16]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[17] and for corporate taxes.[18]

In Canada, the government's financial year is 1 April to 31 March.[19]
(Q1 1 April - 30 June, Q2 1 July - 30 Sept, Q3 1 Oct - 31 Dec and Q4 1 Jan - 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[20]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In Egypt, the fiscal year is 1 July to 30 June.[21]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[22]

In Germany, the fiscal year runs from 1st January until 31st December.

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong, the government's financial year runs from 1 April to 31 March.[23][24]

However, a company incorporated in Hong Kong can determine its own financial year-end, which may be different from the government fiscal year.

In India, the government's financial year runs from 1 April to 31 March the following year.[25] The financial year from 1 April 2020 to 31 March 2021 would generally be abbreviated as FY 2020-21, but it may also be called FY 2021 on the basis of the ending year. [26]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered's IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economic health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India's financial year with that of the British Empire.[27][28] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[29]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[29] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[30]

On 4 May 2017, Madhya Pradesh announced that it would move to a January–December financial year, becoming the first Indian state to do so. But later it dropped the idea.[31]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[32]

In Iran, the fiscal year usually starts on 21st or 22 March (1st of Farvardin in the Solar Hijri calendar) and concludes on next year's 20th or 21 March (29th or 30th of Esfand in the Solar Hijri calendar).[33]

In Ireland, the fiscal year is the calendar year, 1 January to 31 December. Until 2001, it was the year ending 5 April, as in the United Kingdom, but was changed with the introduction of the euro. The 2001 tax year was nine months, from April to December.[34]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[35]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[36]

In Japan, the government's financial year is from 1 April to 31 March.[37]

Japan's income tax year is 1 January to 31 December,[38] but corporate tax is charged according to the corporation's own annual period.[39]

In Lithuania, the fiscal year is the calendar year, 1 January to 31 December.[40]

In Macau, the government's financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Moldova, the fiscal year is the calendar year, 1 January to 31 December.[41]

In Myanmar, the fiscal year is 1 October to 30 September.[42]

In Nepal, the fiscal year is July 16 (1 Shrawan in Bikram calendar) to July 15 (31 Ashad in Bikram calendar).[43]

In New Zealand, the government's fiscal[44] and financial reporting[45] year is 1 July to the next 30 June[46] and applies also to the budget. The company and personal financial year[47] is 1 April to 31 March and applies to company and personal income tax.

In Pakistan, the government's fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government's fiscal year.[48]

In the Philippines, the government's fiscal year is the calendar year, from 1 January to 31 December.[49]

The accounting period for the private sector must follow a 12-month fiscal period which can or can not be synchronized with the calendar year. Most Philippine companies end their fiscal years in December or March.[50]

In Poland, the fiscal year is the calendar year, from 1 January to 31 December.

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[51]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[22]

In Singapore, the fiscal year for the calculation of personal income taxes is 1 January to 31 December.[52]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[4]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant. However, new companies should consciously choose their financial year end to stretch as much as a duration of 12 months as possible.[53]

In South Africa, the financial year for the Government of South Africa is 1 April to 31 March.[4]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[54]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[55]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[56]

The fiscal year for an organisation is typically one of the following:

• 1 January to 31 December
• 1 May to 30 April
• 1 July to 30 June
• 1 September to 31 August

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[57][58]

In Switzerland, the fiscal year is the calendar year, 1 January to 31 December.[59]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[60]

In Thailand, the government's fiscal year (FY) is 1 October to 30 September of the following year.[61] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Turkey, the fiscal year is the calendar year, 1 January to 31 December.[62]

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[63]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[4]

In the United Kingdom, the financial year runs from 1 April to 31 March for the purposes of government financial statements.[64][65] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[66]

Although United Kingdom corporation tax is charged by reference to the government's financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[67]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government's financial year, which ends on the last day of March, as they have found no reason to change since privatisation.

The 5 April year end for income tax reflects the old civil and ecclesiastical calendar under which New Year began on 25 March (Lady Day). The difference between the two dates is accounted for by the eleven days omitted in September 1752 due to the Calendar (New Style) Act 1750 by which Great Britain also converted from the Julian Calendar to the Gregorian Calendar. However, although the calendar year finished on 24 March, the tax year finished a day later, on 25 March, the Quarter Day.

For a fuller explanation about the history of the United Kingdom income tax year and its start date, see History of taxation in the United Kingdom#Why the United Kingdom income tax year begins on 6 April.

Federal Revenue and Spending

In the United States, the federal government's fiscal year is the 12-month period beginning 1 October and ending 30 September the following year. The identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2023, often written as "FY2023" or "FY23", which began on 1 October 2022 and will end on 30 September 2023.

Until 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the "transitional quarter" from 1 July 1976 to 30 September 1976. An earlier shift in the federal government's fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[68]

For example, the United States government Fiscal Year 2023 is:

• 1st quarter: 1 October 2022 – 31 December 2022
• 2nd quarter: 1 January 2023 – 31 March 2023
• 3rd quarter: 1 April 2023 – 30 June 2023
• 4th quarter: 1 July 2023 – 30 September 2023

State governments set their own fiscal year. Forty-six of the fifty states set their fiscal year to end on 30 June.[69] Four states have fiscal years that end on a different date:

• Alabama, ends 30 September
• Michigan, ends 30 September
• New York, ends 31 March
• Texas, ends 31 August

The fiscal year for the Washington, D.C., government ends on 30 September.[70]

Among the inhabited territories of the United States, most align with the federal fiscal year, ending on 30 September. These include American Samoa, Guam, the Northern Mariana Islands and the U.S. Virgin Islands.[69] Puerto Rico is the exception, with its fiscal year ending on 30 June.

In Vietnam, the fiscal year is the calendar year, 1 January to 31 December.