Changing a Company's Financial Year End

Many directors assume that changing a company’s financial year requires a special form to be submitted to SSM — but the Companies Act 2016 in fact makes no mention of such a form at all.

Do you need to notify SSM when changing the financial year?

Not separately. The Companies Act 2016 does not provide for any specific form or notice to the Registrar solely for a change in the financial year end (FYE). The change is an internal decision — the board of directors sets or amends the FYE — and it “takes effect” once the next set of financial statements is prepared according to the new period.

Some secretarial and accounting firms describe this process as “notifying SSM”. That phrasing can be misleading: there is no standalone FYE-change form under the Act. Instead, SSM becomes aware of the new financial year through routine filings — namely the financial statements lodged under section 259, which by themselves reflect the FYE used. So what matters for SSM is not a change notification, but that you continue to comply with the timeframes for preparing, circulating and lodging the financial statements.

This differs from the tax authority. For LHDN, a change in the accounting period must indeed be notified separately via Form CP204B (see below).

How is the change carried out?

An FYE change is usually made by a board of directors’ resolution, supported by a business reason — for example aligning the FYE with the holding company, or following a change in operational policy. Note the related requirements:

• Subsidiaries within a group (section 247): the directors of the holding company must take steps so that, within two years after a body corporate becomes a subsidiary, that subsidiary’s financial year aligns with the financial year of the holding company. This is subject to the exception where the Registrar may allow otherwise (s.247(10)–(12)). This provision governs alignment within a group, not a voluntary FYE change by a standalone company.
• First statements (section 248): the first financial statements must be prepared within 18 months of the date of incorporation, and subsequent statements within 6 months of the financial year end.

The deadlines that still apply

Changing the FYE does not loosen any deadline — it merely shifts it. All periods are recalculated from the new financial year end:

Obligation	Timeframe	Reference
Prepare the first financial statements	18 months from incorporation	s.248
Prepare subsequent statements	6 months from the financial year end	s.248
Circulate to members (private company)	6 months from the financial year end	s.258
Lodge a copy with SSM	30 days after circulation	s.259

Don’t forget LHDN: Form CP204B

This is the follow-on effect most often overlooked. A change in the accounting period generally needs to be notified to LHDN via Form CP204B, submitted through the MyTax e-Filing system.

The filing deadline depends on whether the new accounting period is shortened (less than 12 months) or extended (more than 12 months), and should be calculated before the end of the relevant period. The exact figures, as well as the acceptance status of manual notices versus e-Filing under the current LHDN Public Ruling, should be confirmed directly with LHDN or your tax agent before filing — secondary references on this point could not be verified against LHDN primary sources at the time this draft was prepared.

Failure to file CP204B on time can expose the company to penalties under the Income Tax Act 1967.

Next steps

Confirm the business reason for the FYE change, pass a board of directors’ resolution, and remap the circulation (6 months, s.258) and lodgement (30 days, s.259) dates from the new FYE. After that, file Form CP204B on MyTax within the relevant period. Consult your company secretary and tax agent to confirm the CP204B deadline and align both of these calendars, and always check the full text of the Companies Act 2016 (Act 777) on the SSM website for the latest provisions.