Tax year is the calendar year
Returns
The tax year is the calendar year. Taxes on business income based on financial
statements supported by a proper accounting system will be levied on the net
profit for the business year ending in the given calendar year. A business year
can be shorter, but never longer, than twelve months.
Changes in accounting
year-end will therefore always have the effect that, in at least one tax year, the
taxable income will be based on the combined results for two accounting
periods. A company or other business has a free choice in determining its
accounting year-end date on formation or start-up and may also change this at
any time to the calendar year-end, provided the company law formalities are
adhered to.
However, tax office approval is required for changes to a date other
than December 31; this approval can be applied for informally and is usually
given where the change is to conform to the year-end date of a foreign parent
company, or for another good reason.
EU Forecast
euf:ba18e:129/nws-01