Fiscal Year

A fiscal year is a 12-month accounting period used for financial reporting and tax purposes. It can differ from the calendar year and is often chosen to align with operational or industry-specific cycles.

For example, a company might operate on a fiscal year running from July 1 to June 30. Financial reports, tax filings, and budgets are typically structured around the fiscal year to ensure consistent and comparable financial performance tracking.

In the UAE, businesses must also synchronize fiscal years with VAT return periods for compliance.