Fiscal year
A fiscal year is used in government 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 but generally with the reporting period not aligning with the calendar year. 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. Under such a system, some fiscal years have 52 weeks and others 53 weeks.
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 the Northern Hemisphere, that is July to the next June. In the Southern 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 a broadcast calendar as the basis for their fiscal year.
Fiscal years' names are often shortened based on the year in which they end; for example, "fiscal year 2023-2024" and "FY24" are synonymous.
Chart of various fiscal years
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. 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. 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 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.
- United States: individuals may elect any tax year, subject to IRS approval.
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, 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. The fiscal year aligned with the Persian or Solar Hijri calendar used in Afghanistan at the time.Following transfer of power to the Taliban administration in September 2021, Afghanistan abandoned the Solar Hijri calendar in favour of the Lunar Hijri calendar. The fiscal cycle was restarted with effect from 1Muharram 1444 AH.
Australia
In Australia, a fiscal year is commonly called a "financial year", 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, 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:
| 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 |
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.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,,, but it may also be called FY or FY on the basis of the ending year.Companies following the Indian Depositary Receipt 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 and concludes on next year's 20th or 21 March.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.