Singapore Companies are taxed on the income earned in the preceding year. This means that an income that is earned in the financial year of 2017 will be taxed in 2018. 2018 is the ‘Years of Assessment’ or YA.
To assess the amount of tax, IRAS looks at the income, expenses, etc. during the financial year, and this financial year is referred to as the ‘basis period.’ The basis period is generally a 12 month preceding the YA.
An illustration below shows how we can determine on the Years of Assessment based on different financial year end and basis period.