The chargeable income and the associated income tax are determined on a preceding year basis. This means that the income earned in the financial year 2016, which refers to basis period, will be taxed in year 2017 (hence the reference to the YA). As an example, assuming that the financial year-end of a company is 31 March or 31 December, YA 2017 refers to the period starting 1 April 2015 to 31 March 2016 or 1 January 2016 and ending 31 December 2016 respectively.
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