What is the tax year?
The tax year, also referred to as a fiscal year or accounting period, is the seasons that the company or person must file taxes. The tax year varies in different countries. Some countries reflect the calendar year-follow until December-A others give the fiscal year a different 12-month range. The tax year is not usually the period in which taxpayers must submit taxes, but rather a period during which taxes are calculated. For most, taxes are not actually filed and paid only after the end of the 12 -month tax period.
businesses often submit taxes and records according to different systems than individual taxpayers, resulting in different tax years. For example, new companies can submit something called a short tax year. This happens if the date of the initial state of society was somewhere in the middle of the fiscal year instead of at the beginning. However, individuals do not experience short tax years.
Most countries draw up their tax year with a calendar year. This is the case of most taxpayerIn countries like the US and China. In other countries, however, the tax years agree with the calendar year, as in New Zealand, which has an individual fiscal year from 1 April to 21 March, and Pakistan, which has a fiscal year from 1 July to 30 June. Other countries have established a different tax year for corporations and governments than for individuals. In Japan, for example, individual income taxes are administered according to the calendar year, but corporations can submit taxes according to their own 12 -month period.
different transactions can further cause the payment year and the tax year varies. In special cases, shareholders sometimes pay taxes that they have not yet received, as in the case of dividend spilling. Dividends of spilling occur when the company announces that its shareholders are incilement of dividend in the future for the shares currently owned. Although this dividend will not be paid until next year, taxes for it are often paid during the fiscal year in which the company has made its announcement.
in otherIndividuals could indeed postpone cases of taxes for later years for profits they have already received; This is common in the real estate market. Taxpayers can also delay payments in the accounting period of the previous year by receiving the extension of the filing. Extension of filing is a government permit to pay taxes after a normal due date. The extension often gives the taxpayer another three to six months to pay.