Boekjaar
Financial year
The financial year is the period of twelve months in respect of which a company prepares its financial records and annual accounts. This may differ from the calendar year.
The financial year forms the basis for an enterprise’s tax and financial reporting. It comprises the period in which all income and expenditure are recorded and at the end of which the annual accounts and tax returns are prepared.
For the Tax Authority, the financial year determines liability to corporate income tax and other tax obligations. Enterprises may adopt a financial year that does not coincide with the calendar year, provided that such a choice is consistent with their business activities and is notified in a timely manner.
In practice, many companies align their financial year with their operational cycle, for instance retailers whose year-end follows the peak season.
“The company has decided to have its financial year end on 30 June in order to align more closely with its seasonal turnover.”
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