Fiscal year
Learn what a fiscal year is, when South Africa's financial year runs, and how to set your company's year-end.
Published Wednesday 12 August 2026
Table of contents
Key takeaways
- A fiscal year, also called a financial year, is the 12-month period your business uses for accounting, tax and reporting, and it does not have to match the calendar year.
- South Africa runs two main annual cycles: the government fiscal year from 1 April to 31 March, and the individual tax year of assessment from 1 March to the last day of February.
- Companies choose their own financial year-end in their Notice of Incorporation, and most align it to 28 February to match the SARS individual tax year.
- You can change your company's year-end through the CIPC, but only once in a financial year, and the change cannot create a year longer than 15 months.
What is a fiscal year?
A fiscal year is the 12-month period a business, government or organisation uses for accounting and tax purposes. It sets the timeframe for tracking income, expenses and financial performance.
Your fiscal year does not have to match the calendar year, which runs from 1 January to 31 December. Many South African businesses end their year on 28 February, while others pick a date that suits their trade. A fiscal year is often written as FY with its end year, so a year ending 28 February 2026 is FY2026.
At the end of the period you reconcile your accounts and prepare financial statements that show how the business performed.
Fiscal year vs calendar year vs financial year
These terms are closely related but carry distinct meanings. Getting them straight helps you plan reporting and stay compliant with SARS.
- Calendar year: the fixed period from 1 January to 31 December.
- Fiscal year and financial year: used interchangeably in South Africa to mean any 12-month accounting period a business chooses.
- Tax year (year of assessment): for individuals, the period set by SARS running from 1 March to the last day of February.
Individuals pay income tax on the year of assessment, while companies are taxed on their own financial year rather than the fixed March to February cycle, according to SARS.
When is the financial year in South Africa?
South Africa has two principal annual periods, and which one applies depends on whether you are looking at government spending, an individual, or a company.
The government fiscal year runs from 1 April to 31 March, the statutory period defined in the Public Finance Management Act 1 of 1999. This is the year national and provincial budgets are built around.
The individual tax year of assessment runs from 1 March to the last day of February. The 2026 year of assessment ran from 1 March 2025 to 28 February 2026, as SARS confirms.
A company sets its own financial year-end in its Notice of Incorporation, as required by section 27 of the Companies Act 71 of 2008. Most companies choose 28 February so their financial year lines up with the individual tax year, though the law lets you pick any date.
Can you change your company's financial year-end?
Yes. A company can change its financial year-end by filing the change with the Companies and Intellectual Property Commission (CIPC), but there are limits under the Companies Act.
- You can change the year-end only once during a financial year.
- The change cannot create a financial year ending more than 15 months after the previous year-end.
- A normal financial year is 12 months.
When you weigh up a year-end date, think about your revenue cycle, the state of your cash flow at year-end, and any industry norms that make benchmarking easier. Ending your year after a busy trading period gives you a complete picture of your strongest months.
Example of a fiscal year in practice
A short example shows how a fiscal year works in day-to-day terms.
Say a Cape Town retailer does most of its trade over the festive season. It chooses a 28 February year-end, so its financial year from 1 March 2025 to 28 February 2026 captures the full December peak in one reporting period. If it earned R2,000,000 in sales and spent R1,400,000 over that year, its results for FY2026 reflect the complete cycle. A business on a calendar year would instead close its books on 31 December, splitting that festive trade across two reporting years.
Sound small business accounting throughout the year keeps figures like these accurate and ready at year-end.
Why your fiscal year matters
Your fiscal year is more than an admin date. It shapes how you report, plan and stay compliant across the year.
- Financial reporting: your fiscal year sets when you prepare annual accounts, balance sheets and financial reports.
- Tax compliance: company income tax is worked out on your financial year, and provisional tax and VAT returns follow set SARS dates. VAT is charged at 15%, and from 1 April 2026 the compulsory VAT registration threshold rose from R1 million to R2.3 million in taxable supplies over any 12-month period.
- Budgeting: setting budgets and forecasts around your fiscal year helps you allocate resources and manage spending.
- Performance tracking: comparing results year on year only works when each period covers the same 12 months.
Running your numbers in one place makes these easier, so you can generate financial reports whenever you need them. The VAT thresholds above are confirmed by SARS.
Simplify your financial year-end with Xero
Managing your fiscal year is easier with tools that keep your data current. Xero pulls in bank transactions automatically, so you reconcile faster and see where you stand in real time.
Whether you are preparing year-end accounts, filing VAT returns or tracking spending against a budget, Xero gives you a clear view of your finances and lets you share everything with your accountant. Try it and get one month free to see how it fits your business.
FAQs on fiscal year
Here are answers to common questions about fiscal years in South Africa.
What is the difference between a fiscal year and a tax year?
A fiscal year is any 12-month accounting period your business chooses, while the individual tax year of assessment is the fixed 1 March to end of February period set by SARS. Companies are taxed on their own financial year instead of the individual cycle.
Does my company's financial year-end have to be 28 February?
No. You choose your year-end date in your Notice of Incorporation, and many companies pick 28 February simply to match the SARS individual tax year.
Can I change my company's financial year-end?
Yes, by filing the change with the CIPC, but only once in a financial year and without creating a year that ends more than 15 months after the previous year-end.
When does the government fiscal year run in South Africa?
The South African government fiscal year runs from 1 April to 31 March, which is when national and provincial budgets take effect.
What are fiscal quarters?
Fiscal quarters split your fiscal year into four periods of about three months each. They are handy for setting targets, reviewing performance and reporting through the year.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.