Year of Assessment (YA)
In this article, we will explore the definition of Year of Assessment (YA). To help you better understand, we will also introduce the concept of Financial Year and Basis Period.
What is Year of Assessment (YA)?
In Singapore, the tax is calculated on a preceding year basis. The Year of Assessment refers to the year in which the income tax is calculated and charged. Do note that the income tax is assessed on the income earned in the preceding financial year also known as the “basis period”.
- Basis Period: The basis period refers to the period of income being assessed for the Year of Assessment (“YA”). For corporate tax, this follows the financial year/period which generally is a 12 months period preceding the Year of Assessment.
- Financial Year: Financial Year is a one-year accounting period, it's the basis that corporate taxes are assessed on.
Examples Based on Different Financial Year Ends
Here are some examples to help you better understand what Year of Assessment is.
Financial Year End | Basis Period | Year of Assessment (YA) |
31 Mar of each year | 1 Apr 2018 to 31 Mar 2019 | 2020 |
30 Jun of each year | 1 Jul 2018 to 30 Jun 2019 | 2020 |
31 Dec of each year | 1 Jan 2019 to 31 Dec 2019 | 2020 |
