In tax terms, the chargeable income and the associated income tax are determined on a preceding year basis.
As an example, assuming that the financial year-end of a company is 31 December, Year of Assessment 2015 refers to the period starting 1 January 2014 and ending 31 December 2014.
For another company with a financial year-end 31 March, Year of Assessment 2016 refers to the period starting 1 April 2014 and ending 31 March 2015.
The basis period for any Year of Assessment (YA) is the financial year ending in the previous year.
Consequences of misunderstanding what is Year of Assessment
Confusion on year of assessment may cause untimely filing of tax return resulting in inefficient performance of the accounting department as well as penalties from the IRAS.
How Mazars can help you with tax compliance
Preparing the tax computation and the tax return and submit it to the IRAS.
Assist clients to file timely and accordingly within the correct year of assessment