Authors: Jean Loi , Ngwe Lin Myat Chit
What will happen to the period from 1 April 2018 to 30 September 2018?
The financial year of 2017–2018 will be closed, as usual, on 30 March 2018. Therefore, annual tax returns for 2017-2018 financial year have to be lodged by 30 June 2018. Instructions regarding the six-month gap between the start of the new financial year and end of the old financial year have not been made available as yet. It is unclear whether it would be necessary to file another set of returns for the six-month period in December 2018 or whether the FY2018–2019 will have a longer financial period – 18 months period from 1 April 2018 to 30 September 2019.
Can companies change their financial year?
Companies cannot choose to have their own financial year and must follow the financial year prescribed by the Pyidaungsu Hluttaw for statutory purposes. Accordingly, companies are required to prepare audited financial statements in accordance with the financial year prescribed by the Pyidaungsu Hluttaw. These audited statements are required to be lodged with the Internal Revenue Department together with its annual tax returns.