A fiscal year (also known as a financial year, or sometimes budget year) is a one-year time interval whose beginning and end may be shifted with respect to the calendar year (1 January to 31 December). In the Northern Hemisphere, the most common shifted fiscal year is July to the next June, but other practices exist, such as April to the next March. For countries in the Southern Hemisphere, the fiscal year normally coincides with the calendar year, January to December. The series of consecutive fiscal years forms a calendar system known as fiscal calendar. The names of fiscal years are often shortened based on the calendar year in which they ; for example, "FY24" is an abbreviation for "fiscal year 2023-2024".
It is used in governmental accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on an annual basis. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxes, such as income tax. Many annual government feessuch as council tax and license feesare also levied on a fiscal year basis, but others are charged on an anniversary basis.
Some companies, such as Cisco Systems, end their fiscal year on the same day of the week each year: the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years have 52 weeks and others 53 weeks.Ed St John
The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for most large corporations in the United Kingdom. That is the case in many countries around the world with a few exceptions such as Australia, New Zealand, and Japan.
Many universities have a fiscal year which ends during the summer to align the fiscal year with the academic year, and universities are typically quieter during the summer months. In a similar fashion, many nonprofit performing arts organizations will have a fiscal year which ends during the summer, so that their performance season that begins in the fall and ends in the spring will be within one fiscal year.
Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.
Chart of various fiscal years
+ Start date of fiscal year by country Country Purpose (Jul) (Aug) (Sep) (Oct) (Nov) (Dec) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Jan)(Feb) (Mar) Australia Austria Bangladesh Belgium Brazil Canadagovernmentcorporate/personal China Costa Rica Croatia EgyptEthiopia8 July France Germany Greece Hong Kong India Indonesia Iran21 March Ireland Israel Italycorporate/government Japancorporate/governmentpersonal Kenya Latvia Lithuania Malaysia Mexico Moldova Mongolia Nepal 16 July Netherlands New Zealandgovernmentcorporate/personal Norway Pakistan Philippines Portugal Qatar Romania Russia Singaporegovernmentpersonal South Africa South Korea Spaincorporate/government SwedenSwitzerlandTaiwan Thailand Turkey United Arab Emirates United Kingdompersonal 6 Aprilcorporate/government United Statesfederalmost statescorporate/personal Country Purpose (Jul) (Aug) (Sep) (Oct) (Nov) (Dec) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Jan) (Feb) (Mar)
Tax year The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer's tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.See, e.g., U.S. IRS Publication 538. Some federal countries, such as Canada and Switzerland, require the provincial or cantonal tax year to align with the federal year. In the United States, most states retained a 30 June fiscal year-end date when the federal government switched to 30 September in 1976. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks. – Period for computation of taxable income However, short years are permitted as the first year or when changing tax years.
Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include: Australia: individuals pay income tax based on the financial year of 1 July until 30 June. United Kingdom: the tax year for individuals begins on 6 April. This is due to Britain historically having a calendar year starting on Lady Day (25 March) in the Julian calendar but a fiscal year ending on that day. When the UK adopted the Gregorian calendar in 1752, 25 March translated to 5 April and 26 March to 6 April. (See History of taxation in the United Kingdom#Start of tax year for more detailed explanation.) United States: individuals may (but rarely do) elect any tax year, subject to IRS approval.See instructions to IRS Form 1128 and
Many jurisdictions require that the tax year conform to the taxpayer's fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.
Operation by jurisdiction In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the US and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.
Afghanistan In Afghanistan, from 2011 to 2021, the fiscal year began on 1Hamal (20th or 21 March). The fiscal year aligned with the Persian or Solar Hijri calendar used in Afghanistan at the time.
Australia In Australia, a fiscal year is commonly called a "financial year" (FY), and starts on 1 July, ending on 30 June the next year. Financial years are designated by the calendar year of the second half of the period. For example, financial year is the 12-month period ending on 30 June and can be referred to as FY/. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises. 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. 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.
The financial year is split into four quarters which cover the following periods: QuarterPeriod coveredQuarter 11 Jul – 30 SepQuarter 21 Oct – 31 DecQuarter 31 Jan – 31 MarQuarter 41 Apr – 30 Jun
Austria In Austria, the fiscal year is the calendar year, 1 January to 31 December.
Bangladesh In Bangladesh, the fiscal year is 1 July to the next 30 June.
Belarus In Belarus, the fiscal year is the calendar year, 1 January to 31 December.
Brazil In Brazil, the fiscal year is the calendar year, 1 January to 31 December.
Bulgaria In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax and for corporate taxes.
Canada In Canada, the government's financial year is 1 April to 31 March. (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.
China 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.
Colombia In Colombia, the fiscal year is the calendar year, 1 January to 31 December.
Costa Rica In Costa Rica, the fiscal year is the calendar year. January to December. As of 2019 when the tax laws changed.
Egypt In Egypt, the fiscal year is 1 July to 30 June.
France In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.
Germany In Germany, the fiscal year runs from 1 January until 31 December.
Greece In Greece, the fiscal year is the calendar year, 1 January to 31 December.
Hong Kong In Hong Kong, the government's financial year runs from 1 April to 31 March.
However, a company incorporated in Hong Kong can determine its own financial year-end, which may be different from the government fiscal year.
India In India, the government's financial year runs from 1 April to 31 March the following year. The financial year from 1 April to 31 March would generally be abbreviated as FY – or( FY-) ( FY/),(FY/),(FY/), but it may also be called FY or FY on the basis of the ending year.
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. Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.
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 due to many financial and accounting errors.
Indonesia In Indonesia, since 2001, the fiscal year is the calendar year, 1 January to 31 December. Until 2000, the fiscal year ran from 1 April to 31 March; fiscal year 2000 ran from 1 April to 31 December.
Iran In Iran, the fiscal year usually starts on 21st or 22 March (1st of Farvardin in the Solar Hejri calendar) and concludes on next year's 20th or 21 March (29th or 30th of Esfand in the Solar Hijri calendar).
Ireland 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.
Israel In Israel, the fiscal year is the calendar year, 1 January to 31 December.
Italy 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.
Japan In Japan, the government's financial year is from 1 April to 31 March.
Japan's income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation's own annual period; most Japanese corporations elect their annual period to follow the government fiscal year (1 April to 31 March).
Lithuania
In Lithuania, the fiscal year is the calendar year, 1 January to 31 December.
Macau In Macau, the government's financial year is 1 January to 31 December.
Malaysia
In Malaysia, the tax year for individuals is the calendar year, from 1 January to 31 December.
The Companies Act 2016 does not state when the fiscal year must start for companies, so businesses are free to choose a financial year-end date. Private businesses usually choose the last day of the calendar year or the last day of the quarter for their financial year end.