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Afiscal year (also known as afinancial year, or sometimesbudget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used forfinancial reporting by businesses and other organizations. Laws in manyjurisdictions require company financial reports to be prepared and published on an annual basis but generally with the reporting period not aligning with thecalendar year (1 January to 31 December). 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 fordirect taxes, such as income tax. Many annual government fees—such as council tax and license fees—are also levied on a fiscal year basis, but others are charged on ananniversary basis.
Some companies, such asCisco Systems,[1] 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.[2]
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.[3] That is the case in many countries around the world with a few exceptions such as Australia, New Zealand, and Japan.[4]
Many universities have a fiscal year which ends during the summer to align the fiscal year with theacademic year, and universities are typically quieter during the summer months. In theNorthern Hemisphere, that is July to the next June. In theSouthern Hemisphere, that is the calendar year, January to December. 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 abroadcast calendar as the basis for their fiscal year.
Fiscal years' names are often shortened based on the year in which theyend; for example, "fiscal year 2023-2024" and "FY24" are synonymous.
| Country | Purpose | (Jul) | (Aug) | (Sep) | (Oct) | (Nov) | (Dec) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | (Jan) | (Feb) | (Mar) |
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| Iran | 21 March | |||||||||||||||||||||
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| Nepal | 16 July | |||||||||||||||||||||
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| United Kingdom | personal | 6 April | ||||||||||||||||||||
| corporate/government | 1 April[5] | |||||||||||||||||||||
| United States | federal | |||||||||||||||||||||
| most states | ||||||||||||||||||||||
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| Country | Purpose | (Jul) | (Aug) | (Sep) | (Oct) | (Nov) | (Dec) | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | (Jan) | (Feb) | (Mar) |
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.[6] 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.[7] However, short years are permitted as the first year or when changing tax years.[8]
Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:
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.[7]
In some jurisdictions, particularly those that permittax consolidation, companies that are part of agroup 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.[citation needed]
InAfghanistan, from 2011 to 2021, the fiscal year began on 1 Hamal (20th or 21 March).[11] The fiscal year aligned with the Persian orSolar Hijri calendar used in Afghanistan at the time.
Following transfer of power to theTaliban administration in September 2021, Afghanistan abandoned the Solar Hijri calendar in favour of theLunar Hijri calendar. The fiscal cycle was restarted with effect from 1 Muharram 1444AH (30 July 2022).[12]
InAustralia, 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 2026 is the 12-month period ending on 30 June 2026 and can be referred to as FY2025/26. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[9] 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 four quarters which cover the following periods:[14]
| Quarter | Period covered |
|---|---|
| Quarter 1 | 1 Jul – 30 Sep |
| Quarter 2 | 1 Oct – 31 Dec |
| Quarter 3 | 1 Jan – 31 Mar |
| Quarter 4 | 1 Apr – 30 Jun |
InAustria, the fiscal year is the calendar year, 1 January to 31 December.
InBangladesh, the fiscal year is 1 July to the next 30 June.[15]
InBelarus, the fiscal year is the calendar year, 1 January to 31 December.[16]
InBrazil, the fiscal year is the calendar year, 1 January to 31 December.
InBulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[17] and for corporate taxes.[18]
InCanada, 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.
InChina, 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]
InColombia, the fiscal year is the calendar year, 1 January to 31 December.
InCosta Rica, the fiscal year is the calendar year. January to December. As of 2019 when the tax laws changed.[21]
InEgypt, the fiscal year is 1 July to 30 June.[22]
InFrance, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[23]
In Germany, the fiscal year runs from 1 January until 31 December.
InGreece, the fiscal year is the calendar year, 1 January to 31 December.
InHong Kong, the government's financial year runs from 1 April to 31 March.[24]
However, a company incorporated in Hong Kong can determine its own financial year-end, which may be different from the government fiscal year.
InIndia, the government's financial year runs from 1 April to 31 March the following year.[25] The financial year from 1 April 2025 to 31 March 2026 would generally be abbreviated as FY 2025–26 or( FY25-26) ( FY2025/26),(FY2025/2026),(FY25/26), but it may also be called FY 2026 or FY26 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]
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.[30]
InIndonesia, 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.[31]
InIran, the fiscal year usually starts on 21st or 22 March (1st ofFarvardin in theSolar Hejri calendar) and concludes on next year's 20th or 21 March (29th or 30th ofEsfand in theSolar Hijri calendar).[32]
InIreland, 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 theeuro. The 2001 tax year was nine months, from April to December.[33]
InIsrael, the fiscal year is the calendar year, 1 January to 31 December.[34]
InItaly, 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.[35]
InJapan, the government's financial year is from 1 April to 31 March.[36]
Japan'sincome tax year is 1 January to 31 December,[37] butcorporate tax is charged according to the corporation's own annual period;[38] most Japanese corporations elect their annual period to follow the government fiscal year (1 April to 31 March).
InLithuania, the fiscal year is the calendar year, 1 January to 31 December.[39]
InMacau, the government's financial year is 1 January to 31 December.
InMalaysia, the tax year for individuals is the calendar year, from 1 January to 31 December.[40]
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.[41] Private businesses usually choose the last day of the calendar year or the last day of the quarter for their financial year end.
Generally, the government releases the annualfederal budget in October, ahead of the fiscal year.
InMexico, the fiscal year is the calendar year, 1 January to 31 December.
InMoldova, the fiscal year is the calendar year, 1 January to 31 December.[42]
InMyanmar, the fiscal year is 1 April to 31 March.[43]
InNepal, the fiscal year is 16 July (29Dilā inNepal Sambat) to 15 July (28 Dilā in Nepal Sambat).[44]
InNew Zealand, the government's fiscal[45] and financial reporting[46] year is 1 July to the next 30 June[47] and applies also to the budget. The company and personal financial year[48] is 1 April to 31 March and applies to company and personal income tax.
InPakistan, 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.[49]
In thePhilippines, the government's fiscal year is the calendar year, from 1 January to 31 December.[50]
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.[51]
InPoland, the fiscal year is the calendar year, from 1 January to 31 December.[52]
InPortugal, the fiscal year is the calendar year, 1 January to 31 December.
InQatar, the fiscal year is from 1 January to 31 December.
InRomania, the fiscal year is the calendar year, 1 January to 31 December.[53]
InRussia, the fiscal year is the calendar year, 1 January to 31 December.[23][better source needed]
InSaudi Arabia, the fiscal year is the calendar year, 1 January to 31 December.[54]
InSingapore, the fiscal year for the calculation ofpersonal income taxes is 1 January to 31 December.[55]
The fiscal year for theGovernment of Singapore and manygovernment-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.[56]
InSouth Africa, the financial year for theGovernment 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.[citation needed]
InSouth Korea, the fiscal year is the calendar year, 1 January to 31 December.[57]
InSpain, the fiscal year is the calendar year, 1 January to 31 December.[58]
InSweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[59]
The fiscal year for an organisation is typically one of the following:
However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from theTax Authority is required.[60][61]
InSwitzerland, the fiscal year is the calendar year, 1 January to 31 December.[62]
InTaiwan, 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.[63]
InThailand, the government's fiscal year (FY) is 1 October to 30 September of the following year.[64] For individual taxpayers it is the calendar year, 1 January to 31 December.
InTurkey, the fiscal year is the calendar year, 1 January to 31 December.[65]
InUkraine, the fiscal year is the calendar year, 1 January to 31 December.[66]
In theUnited Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[4]
In theUnited Kingdom, the financial year runs from 1 April to 31 March for the purposes of government financial statements.[5] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[67]
AlthoughUnited 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.[68]
A number of major corporations that were once government-owned, such asBT Group and theNational 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 sinceprivatisation.[citation needed]
The 5 April year end for income tax reflects the old civil andecclesiastical 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 theCalendar (New Style) Act 1750 by whichGreat Britain also converted from theJulian Calendar to theGregorian Calendar. However, although the calendar year finished on 24 March, the tax year finished a day later, on 25 March, theQuarter Day – the traditional day on which debts were settled. (For a fuller explanation about the history of the United Kingdom income tax year and its start date, seeHistory of taxation in the United Kingdom § Start of tax year.)
In theUnited States, the fiscal year of thefederal government begins 1 October and ends 30 September the following year. The current fiscal year is the fiscal year 2026 and is abbreviated FY26 or FY2025-26. It began 1 October 2025 and will end on 30 September 2026.[69]
For example, the United States government fiscal year 2025-26 is:
| Quarter | Dates |
|---|---|
| 1st | 1 October 2025 – 31 December 2025 |
| 2nd | 1 January 2026 – 31 March 2026 |
| 3rd | 1 April 2026 – 30 June 2026 |
| 4th | 1 July 2026 – 30 September 2026 |
Source:[69]
Fiscal years are used by the United States federal government for accounting purposes.[70][further explanation needed]
In 1843, the federal government changed the fiscal year from that of a calendar year (beginning 1 January), to one starting on 1 July.[71] These fiscal years ran from 1 July to 30 June the following year. The current fiscal year of 1 October to 30 September was introduced by theCongressional Budget and Impoundment Control Act of 1974. This created what is known as the "transitional quarter", from 1 July 1976 to 30 September 1976, to allow Congress more time to arrive at budget decisions. The first "modern" fiscal year ran 1 October 1976 to 30 September 1977, and was called fiscal year 1976-77 (abbreviated FY77).[72]
| Quarter | Dates |
|---|---|
| 1st | 1 July 1975 – 30 September 1975 |
| 2nd | 1 October 1975 – 31 December 1975 |
| 3rd | 1 January 1976 – 31 March 1976 |
| 4th | 1 April 1976 – 30 June 1976 |
| Plus | 1 July 1976 – 30 September 1976 |
| FY1977 | 1 October 1976 – 30 September 1977 |
Source:[72]
State governments set their own fiscal year. Forty-six of the fifty states set their fiscal year to end on 30 June.[73] Two states have fiscal years that are different:
The fiscal year for theWashington, DC government ends on 30 September.[75]
Among the inhabitedterritories of the United States, most align with the federal fiscal year, ending on 30 September. These includeAmerican Samoa,Guam, theNorthern Mariana Islands and theUS Virgin Islands.[73]Puerto Rico is the exception, with its fiscal year ending on 30 June.
InVietnam, the fiscal year is the calendar year, 1 January to 31 December.
The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good accounting practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season. Economist Pamela P. Drake notes that there are cases where businesses choose a year-end which fits with the slower part of their business year. At this point in the year they are likely to hold lessinventory than their average daily inventory over the whole year.[76]
"Financial year" means, in relation to matters relating to the Consolidated Fund, the National Loans Fund, or moneys provided by Parliament, or to the Exchequer or to central taxes or finance, the twelve months ending with 31st March. [1889]
Notes. Unless otherwise indicated, all years referred to are fiscal years. For 1976 and before, fiscal years ran from July 1 through June 30 and were referred to by the years in which they ended. The Congressional Budget Act of 1974 changed the fiscal year to begin on October 1 and end on September 30. The interim between the old and new fiscal years, July 1 through September 30, 1976 is called the transition quarter; fiscal year 1977 began on October 1, 1976.
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