---
title: "Year of Assessment (YA) & Basis Period Guide | Singapore Tax"
description: "Confused by Year of Assessment (YA) and Basis Period in Singapore? Learn how IRAS assesses corporate tax and why your Financial Year End matters."
url: "https://corporate.taxinfo.sg/tax-rates/year-of-assessment"
language: "en"
---

Tax Basics

# Year of Assessment \(YA\) and Basis Period

Understand how IRAS determines the year your company's income is taxed, and why choosing the right Financial Year End matters.

![Illustration showing a calendar and timeline representing Singapore's Year of Assessment and Basis Period](https://23eyzuj14s.koniglecdn.com/images/singapore-tax-calendar-timeline.webp)

## What is the Year of Assessment \(YA\)?

In Singapore, corporate tax is assessed on a preceding year basis. The **Year of Assessment \(YA\)** is the year in which your company's income is assessed and taxed. The income being taxed is the income earned in the financial year immediately preceding the YA.

## What is the Basis Period?

The **Basis Period** refers to the specific 12-month accounting period \(Financial Year\) that falls within the preceding calendar year. The profit earned during this basis period is what gets taxed in the corresponding YA.

### A Practical Example

If your company has a Financial Year End \(FYE\) of 31 December:

  * **Basis Period:** 1 January 2023 to 31 December 2023
  * **Year of Assessment \(YA\):** 2024

Therefore, any profits your company made in 2023 will be declared and taxed in the year 2024.

## Why Your Financial Year End \(FYE\) Matters

Choosing your FYE determines your tax filing deadlines. For instance, your Estimated Chargeable Income \(ECI\) must be filed within three months of your FYE.

Additionally, for newly incorporated companies, your FYE determines how you maximize the Start-Up Tax Exemption \(SUTE\). If your first financial year is less than 12 months, it still counts as your first full YA for the exemption scheme. Many companies strategically choose an FYE that gives them a full 12-month first basis period to maximize these initial tax benefits.

## Changing Your Financial Year End

You can change your company's FYE, but you must notify ACRA and IRAS. If the change results in a basis period of more than 12 months, IRAS will require you to apportion your income and file tax returns for the respective YAs accordingly.