A company must close its accounting period every year. An accounting period shall be 12 months except in the following cases where it may be less than 12 months:

  1. A newly setup company or juristic partnership may choose to use the period from its registration date to any date as its first accounting period.
  2. A company or juristic partnership may file a request with the Director-General to change the last day of an accounting period. In such case, the Director-General shall have the authority to approve as he deems appropriate. Such an order shall be notified to the company or juristic partnership who files the request within a reasonable period of time and in the case where the Director-General grants the permission, the company or juristic partnership shall comply with the accounting period as prescribed by the Director-General.
  3. In the case of a merger between a company or a juristic partnership, the company or juristic partnership must terminate the merger contract and use the date of official termination of the contract provided by government officials as the last day of its accounting period.
  4. In the case whereas a company or juristic partnership’s files for dissolution, the company or juristic partnership shall use the date of official termination of incorporation provided by the government officials as the last day of its accounting period.

On the other hand, an accounting period of more than 12 months may be possible in the case of a company or juristic partnership closing down and being unable to pay the tax within 150 days; counting from the last day of the accounting period, the company or juristic partnership can send a petition within 30 days from the date of official termination of the contract provided by the government officials. The Director-General of the Revenue Department may grant an extended accounting periods which can be more than 12 months.

MSNA group of companies provide accounting, audit and related services for closing your accounting period. We can also help if you want to change your accounting period.