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Index of Economic Freedom – heritage.org

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Brazils economic freedom score is 51.4, making its economy the 153rd freest in the 2018 Index. Its overall score has decreased by 1.5 points, with a steep drop in fiscal health and declines in labor freedom, business freedom, government spending, and government integrity overwhelming improvements in judicial effectiveness and property rights. Brazil is ranked 27th among 32 countries in the Americas region, and its overall score is below the regional and world averages.

Since taking office in August 2016, President Michel Temer has proposed economic reforms to slow the growth of government spending and reduce barriers to foreign investment. Government spending growth helped to push public debt to 70 percent of GDP at the end of 2016, up from 50 percent in 2012. Policies to strengthen Brazils workforce and industrial sector, such as local content requirements, may have increased employment at the expense of investment.

Brazil, the worlds fifth-largest country, has a mostly coastal population of more than 200 million and is dominated by the Amazon River and the worlds largest rain forest. Public corruption scandals have led to political chaos. Former President Luiz Incio Lula da Silva of the socialist Workers Party faces multiple judicial trials on charges of corruption. His successor, Dilma Rousseff, continued his leftist and populist agenda but was impeached and removed from office early in her second term for alleged budgetary misconduct to boost vote-buying during an ongoing economic downturn precipitated by crashing commodity prices. Michel Temer, a market-oriented centrist who then assumed the presidency, has also been tainted by allegations of corruption. His top priority has been consolidation of public finances.

Property rights are enforced, but challenges to intellectual property rights persist in Brazil. The judiciary, although largely independent, is overburdened, inefficient, and often subject to intimidation and other external influences. Corruption and graft remain pervasive, especially among elected officials, undermining the governments ability to make and implement policy without undue influence from private or criminal interests.

The personal income tax rate is 27.5 percent. The standard corporate rate is 15 percent, but other taxes, including a financial transactions tax, make the effective rate 34 percent. The overall tax burden equals 32.0 percent of total domestic income. Over the past three years, government spending has amounted to 40.5 percent of total output (GDP), and budget deficits have averaged 8.4 percent of GDP. Public debt is equivalent to 78.3 percent of GDP.

High nonsalary labor costs, low domestic productivity, and ongoing political uncertainties hamper business formation. Business owners often complain about the Custo Brasil (Brazil Cost), including poor infrastructure, rigid labor laws, and complex tax, local content, and regulatory requirements. The government has cut back on subsidized lending by the national development bank (BNDES) and has reduced fuel subsidies.

Trade is moderately important to Brazils economy; the combined value of exports and imports equals 25 percent of GDP. The average applied tariff rate is 8.3 percent. Nontariff barriers impede trade. Government openness to foreign investment is below average. Banking and capital markets are diversified and growing, but state involvement in credit markets has expanded steadily, and public banks account for 50 percent of loans to the private sector.

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Index of Economic Freedom – heritage.org

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on an annual basis, but generally do not require the reporting period to align with the calendar year (1 January to 31 December). Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as a FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

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Fiscal year – Wikipedia

Freedom in the 50 States 2015-2016 | Overall Freedom …

William P. Ruger

William P. Ruger is Vice President of Policy and Research at the Charles Koch Institute and Charles Koch Foundation. Ruger is the author of the biography Milton Friedman and a coauthor of The State of Texas: Government, Politics, and Policy. His work has been published in International Studies Quarterly, State Politics and Policy Quarterly, Armed Forces and Society, and other outlets. Ruger earned an AB from the College of William and Mary and a PhD in politics from Brandeis University. He is a veteran of the war in Afghanistan.

Jason Sorens is Lecturer in the Department of Government at Dartmouth College. His primary research interests include fiscal federalism, public policy in federal systems, secessionism, and ethnic politics. His work has been published in International Studies Quarterly, Comparative Political Studies, Journal of Peace Research, State Politics and Policy Quarterly, and other academic journals, and his book Secessionism: Identity, Interest, and Strategy was published by McGill-Queens University Press in 2012. Sorens received his BA in economics and philosophy, with honors, from Washington and Lee University and his PhD in political science from Yale University.

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Freedom in the 50 States 2015-2016 | Overall Freedom …

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as a FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

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Fiscal year – Wikipedia

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as a FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

Continued here:

Fiscal year – Wikipedia

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as a FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

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Fiscal year – Wikipedia

Economic Freedom Index – heritage.org

Read More About CanadaCanadas economic freedom score is 77.7, making its economy the 9th freest in the 2018 Index. Its overall score has decreased by 0.8 point, with declines in judicial effectiveness, government integrity, and labor freedom outweighing a small improvement in fiscal health. Canada is ranked 1st among 32 countries in the Americas region, and its overall score is well above the regional and world averages.

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Economic Freedom Index – heritage.org

Index of Economic Freedom – heritage.org

Download PDF Quick Facts

Brazils economic freedom score is 51.4, making its economy the 153rd freest in the 2018 Index. Its overall score has decreased by 1.5 points, with a steep drop in fiscal health and declines in labor freedom, business freedom, government spending, and government integrity overwhelming improvements in judicial effectiveness and property rights. Brazil is ranked 27th among 32 countries in the Americas region, and its overall score is below the regional and world averages.

Since taking office in August 2016, President Michel Temer has proposed economic reforms to slow the growth of government spending and reduce barriers to foreign investment. Government spending growth helped to push public debt to 70 percent of GDP at the end of 2016, up from 50 percent in 2012. Policies to strengthen Brazils workforce and industrial sector, such as local content requirements, may have increased employment at the expense of investment.

Brazil, the worlds fifth-largest country, has a mostly coastal population of more than 200 million and is dominated by the Amazon River and the worlds largest rain forest. Public corruption scandals have led to political chaos. Former President Luiz Incio Lula da Silva of the socialist Workers Party faces multiple judicial trials on charges of corruption. His successor, Dilma Rousseff, continued his leftist and populist agenda but was impeached and removed from office early in her second term for alleged budgetary misconduct to boost vote-buying during an ongoing economic downturn precipitated by crashing commodity prices. Michel Temer, a market-oriented centrist who then assumed the presidency, has also been tainted by allegations of corruption. His top priority has been consolidation of public finances.

Property rights are enforced, but challenges to intellectual property rights persist in Brazil. The judiciary, although largely independent, is overburdened, inefficient, and often subject to intimidation and other external influences. Corruption and graft remain pervasive, especially among elected officials, undermining the governments ability to make and implement policy without undue influence from private or criminal interests.

The personal income tax rate is 27.5 percent. The standard corporate rate is 15 percent, but other taxes, including a financial transactions tax, make the effective rate 34 percent. The overall tax burden equals 32.0 percent of total domestic income. Over the past three years, government spending has amounted to 40.5 percent of total output (GDP), and budget deficits have averaged 8.4 percent of GDP. Public debt is equivalent to 78.3 percent of GDP.

High nonsalary labor costs, low domestic productivity, and ongoing political uncertainties hamper business formation. Business owners often complain about the Custo Brasil (Brazil Cost), including poor infrastructure, rigid labor laws, and complex tax, local content, and regulatory requirements. The government has cut back on subsidized lending by the national development bank (BNDES) and has reduced fuel subsidies.

Trade is moderately important to Brazils economy; the combined value of exports and imports equals 25 percent of GDP. The average applied tariff rate is 8.3 percent. Nontariff barriers impede trade. Government openness to foreign investment is below average. Banking and capital markets are diversified and growing, but state involvement in credit markets has expanded steadily, and public banks account for 50 percent of loans to the private sector.

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Index of Economic Freedom – heritage.org

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as a FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

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Fiscal year – Wikipedia

Economic Freedom Index – heritage.org

Read More About CanadaCanadas economic freedom score is 77.7, making its economy the 9th freest in the 2018 Index. Its overall score has decreased by 0.8 point, with declines in judicial effectiveness, government integrity, and labor freedom outweighing a small improvement in fiscal health. Canada is ranked 1st among 32 countries in the Americas region, and its overall score is well above the regional and world averages.

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Economic Freedom Index – heritage.org

Freedom in the 50 States 2015-2016 | Overall Freedom …

William P. Ruger

William P. Ruger is Vice President of Policy and Research at the Charles Koch Institute and Charles Koch Foundation. Ruger is the author of the biography Milton Friedman and a coauthor of The State of Texas: Government, Politics, and Policy. His work has been published in International Studies Quarterly, State Politics and Policy Quarterly, Armed Forces and Society, and other outlets. Ruger earned an AB from the College of William and Mary and a PhD in politics from Brandeis University. He is a veteran of the war in Afghanistan.

Jason Sorens is Lecturer in the Department of Government at Dartmouth College. His primary research interests include fiscal federalism, public policy in federal systems, secessionism, and ethnic politics. His work has been published in International Studies Quarterly, Comparative Political Studies, Journal of Peace Research, State Politics and Policy Quarterly, and other academic journals, and his book Secessionism: Identity, Interest, and Strategy was published by McGill-Queens University Press in 2012. Sorens received his BA in economics and philosophy, with honors, from Washington and Lee University and his PhD in political science from Yale University.

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Freedom in the 50 States 2015-2016 | Overall Freedom …

Index of Economic Freedom – heritage.org

Download PDF Quick Facts

Brazils economic freedom score is 51.4, making its economy the 153rd freest in the 2018 Index. Its overall score has decreased by 1.5 points, with a steep drop in fiscal health and declines in labor freedom, business freedom, government spending, and government integrity overwhelming improvements in judicial effectiveness and property rights. Brazil is ranked 27th among 32 countries in the Americas region, and its overall score is below the regional and world averages.

Since taking office in August 2016, President Michel Temer has proposed economic reforms to slow the growth of government spending and reduce barriers to foreign investment. Government spending growth helped to push public debt to 70 percent of GDP at the end of 2016, up from 50 percent in 2012. Policies to strengthen Brazils workforce and industrial sector, such as local content requirements, may have increased employment at the expense of investment.

Brazil, the worlds fifth-largest country, has a mostly coastal population of more than 200 million and is dominated by the Amazon River and the worlds largest rain forest. Public corruption scandals have led to political chaos. Former President Luiz Incio Lula da Silva of the socialist Workers Party faces multiple judicial trials on charges of corruption. His successor, Dilma Rousseff, continued his leftist and populist agenda but was impeached and removed from office early in her second term for alleged budgetary misconduct to boost vote-buying during an ongoing economic downturn precipitated by crashing commodity prices. Michel Temer, a market-oriented centrist who then assumed the presidency, has also been tainted by allegations of corruption. His top priority has been consolidation of public finances.

Property rights are enforced, but challenges to intellectual property rights persist in Brazil. The judiciary, although largely independent, is overburdened, inefficient, and often subject to intimidation and other external influences. Corruption and graft remain pervasive, especially among elected officials, undermining the governments ability to make and implement policy without undue influence from private or criminal interests.

The personal income tax rate is 27.5 percent. The standard corporate rate is 15 percent, but other taxes, including a financial transactions tax, make the effective rate 34 percent. The overall tax burden equals 32.0 percent of total domestic income. Over the past three years, government spending has amounted to 40.5 percent of total output (GDP), and budget deficits have averaged 8.4 percent of GDP. Public debt is equivalent to 78.3 percent of GDP.

High nonsalary labor costs, low domestic productivity, and ongoing political uncertainties hamper business formation. Business owners often complain about the Custo Brasil (Brazil Cost), including poor infrastructure, rigid labor laws, and complex tax, local content, and regulatory requirements. The government has cut back on subsidized lending by the national development bank (BNDES) and has reduced fuel subsidies.

Trade is moderately important to Brazils economy; the combined value of exports and imports equals 25 percent of GDP. The average applied tariff rate is 8.3 percent. Nontariff barriers impede trade. Government openness to foreign investment is below average. Banking and capital markets are diversified and growing, but state involvement in credit markets has expanded steadily, and public banks account for 50 percent of loans to the private sector.

See the original post here:

Index of Economic Freedom – heritage.org

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as a FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

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Fiscal year – Wikipedia

Economic Freedom Index – heritage.org

Read More About CanadaCanadas economic freedom score is 77.7, making its economy the 9th freest in the 2018 Index. Its overall score has decreased by 0.8 point, with declines in judicial effectiveness, government integrity, and labor freedom outweighing a small improvement in fiscal health. Canada is ranked 1st among 32 countries in the Americas region, and its overall score is well above the regional and world averages.

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Economic Freedom Index – heritage.org

Fiscal Freedom – heritage.org

Tax Burden is a measure of the tax burden imposed by government. It includes direct taxes, in terms of the top marginal tax rates on individual and corporate incomes, and overall taxes, including all forms of direct and indirect taxation at all levels of government, as a percentage of GDP. Thus, the fiscal freedom component is composed of three quantitative factors:

Fiscal freedom scores are calculated with a quadratic cost function to reflect the diminishing revenue returns from very high rates of taxation. The data for each factor are converted to a 100-point scale using the following equation:

Fiscal Freedomij= 100 (Factorij)2

where Fiscal Freedomij represents the fiscal freedom in country i for factor j; Factorij represents the value (based on a scale of 0 to 100) in country i for factor j; and is a coefficient set equal to 0.03. The minimum score for each factor is zero, which is not represented in the printed equation but was utilized because it means that no single high tax burden will make the other two factors irrelevant.

As an example, in the 2013 Index, Mauritius has a flat rate of 15 percent for both individual and corporate tax rates, which yields a score of 93.3 for each of the two factors. Mauritiuss overall tax burden as a portion of GDP is 18.5 percent, yielding a tax burden factor score of 89.7. When the three factors are averaged together, Mauritiuss overall fiscal freedom score becomes 92.1.

Sources. Unless otherwise noted, the Index relies on the following sources for information on taxation, in order of priority: Deloitte, International Tax and Business Guide Highlights; International Monetary Fund, Staff Country Report, Selected Issues and Statistical Appendix, and Staff Country Report, Article IV Consultation, 20092012; PricewaterhouseCoopers, Worldwide Tax Summaries, 20092012; countries investment agencies; other government authorities (embassy confirmations and/or the countrys treasury or tax authority); and Economist Intelligence Unit, Country Commerce and Country Finance, 20092012.

For information on tax burden as a percentage of GDP, the primary sources (in order of priority) were Organisation for Economic Co-operation and Development data; Eurostat, Government Finance Statistics data; African Development Bank and Organisation for Economic Co-operation and Development, African Economic Outlook 2012; International Monetary Fund, Staff Country Report, Selected Issues, and Staff Country Report, Article IV Consultation, 20092012; Asian Development Bank, Key Indicators for Asia and the Pacific, 20092012; and individual contacts from government agencies and multinational organizations such as the IMF and World Bank.

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Fiscal Freedom – heritage.org

Freedom in the 50 States 2015-2016 | Pennsylvania Fiscal …

Analysis

The Keystone State is freer than all its neighbors, but it is a little below the national average, especially on economic policy.

Pennsylvanias tax burden is about average, but the state is a bit more fiscally decentralized than average, with local governments making up a larger share of the total tax take. The tax burden has declined slightly since 2000. Pennsylvanians have ample choice of local government, with more than 4.9 effective competing jurisdictions per 100 square miles. State and local debt and subsidies are higher than average, but public employment is much lower than average (10 percent of the private workforce).

Pennsylvania has drifted down on regulatory policy over time. It does reasonably well on land-use freedom, especially for a northeastern state, a fact that economist William Fischel attributes to the Pennsylvania Supreme Courts willingness to strike down minimum lot sizes and other zoning regulations that have exclusionary intent.129 Pennsylvania is not as bad as most other northeastern states on labor-market regulation, but it lacks a right-to-work law. By most measures, occupational licensing is not very extensive in Pennsylvania, but there was a big jump upward in 200910. Nurses enjoy little practice freedom. Insurance freedom is extremely low, with prior approval of rates and forms and rating classification prohibitions. The civil liability system is muchworse than the national average. The state has partisan judicial elections and has made none of the tort reforms we track.

Pennsylvanias criminal justice policy has worsened over time, at least as measured by crime-adjusted incarceration rates. Nonviolent victimless crime arrests are down since 2006, however. Civil asset forfeiture is mostly unreformed. Pennsylvania has lagged other center-left states in implementing medical cannabis and same-sex marriage, although the latter was imposed by judicial ruling in 2014. Gun rights are much better respected than in other progressive states, with carry licenses affordable and not terribly restricted, all Class III weapons legal, and a right to defend oneself in public, legally recognized in 200910. Since legalizing casinos in 20078, Pennsylvania has risen to become one of the best states in the country for gambling liberty. On the other hand, Pennsylvania is one of the worst states for alcohol freedom. A notoriously inefficient state bureaucracy monopolizes wine and spirits. Wine markups are especially high, direct wine shipments are banned, and even beer is prohibited in grocery stores. On education, Pennsylvania has a long-standing, liberal tax credit scholarship program, but private schools and homeschools are tightly regulated. Smoking bans have gone far but are not total.

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Freedom in the 50 States 2015-2016 | Pennsylvania Fiscal …

Fiscal Freedom – heritage.org

Tax Burden is a measure of the tax burden imposed by government. It includes direct taxes, in terms of the top marginal tax rates on individual and corporate incomes, and overall taxes, including all forms of direct and indirect taxation at all levels of government, as a percentage of GDP. Thus, the fiscal freedom component is composed of three quantitative factors:

Fiscal freedom scores are calculated with a quadratic cost function to reflect the diminishing revenue returns from very high rates of taxation. The data for each factor are converted to a 100-point scale using the following equation:

Fiscal Freedomij= 100 (Factorij)2

where Fiscal Freedomij represents the fiscal freedom in country i for factor j; Factorij represents the value (based on a scale of 0 to 100) in country i for factor j; and is a coefficient set equal to 0.03. The minimum score for each factor is zero, which is not represented in the printed equation but was utilized because it means that no single high tax burden will make the other two factors irrelevant.

As an example, in the 2013 Index, Mauritius has a flat rate of 15 percent for both individual and corporate tax rates, which yields a score of 93.3 for each of the two factors. Mauritiuss overall tax burden as a portion of GDP is 18.5 percent, yielding a tax burden factor score of 89.7. When the three factors are averaged together, Mauritiuss overall fiscal freedom score becomes 92.1.

Sources. Unless otherwise noted, the Index relies on the following sources for information on taxation, in order of priority: Deloitte, International Tax and Business Guide Highlights; International Monetary Fund, Staff Country Report, Selected Issues and Statistical Appendix, and Staff Country Report, Article IV Consultation, 20092012; PricewaterhouseCoopers, Worldwide Tax Summaries, 20092012; countries investment agencies; other government authorities (embassy confirmations and/or the countrys treasury or tax authority); and Economist Intelligence Unit, Country Commerce and Country Finance, 20092012.

For information on tax burden as a percentage of GDP, the primary sources (in order of priority) were Organisation for Economic Co-operation and Development data; Eurostat, Government Finance Statistics data; African Development Bank and Organisation for Economic Co-operation and Development, African Economic Outlook 2012; International Monetary Fund, Staff Country Report, Selected Issues, and Staff Country Report, Article IV Consultation, 20092012; Asian Development Bank, Key Indicators for Asia and the Pacific, 20092012; and individual contacts from government agencies and multinational organizations such as the IMF and World Bank.

View original post here:

Fiscal Freedom – heritage.org

Fiscal Freedom – heritage.org

Tax Burden is a measure of the tax burden imposed by government. It includes direct taxes, in terms of the top marginal tax rates on individual and corporate incomes, and overall taxes, including all forms of direct and indirect taxation at all levels of government, as a percentage of GDP. Thus, the fiscal freedom component is composed of three quantitative factors:

Fiscal freedom scores are calculated with a quadratic cost function to reflect the diminishing revenue returns from very high rates of taxation. The data for each factor are converted to a 100-point scale using the following equation:

Fiscal Freedomij= 100 (Factorij)2

where Fiscal Freedomij represents the fiscal freedom in country i for factor j; Factorij represents the value (based on a scale of 0 to 100) in country i for factor j; and is a coefficient set equal to 0.03. The minimum score for each factor is zero, which is not represented in the printed equation but was utilized because it means that no single high tax burden will make the other two factors irrelevant.

As an example, in the 2013 Index, Mauritius has a flat rate of 15 percent for both individual and corporate tax rates, which yields a score of 93.3 for each of the two factors. Mauritiuss overall tax burden as a portion of GDP is 18.5 percent, yielding a tax burden factor score of 89.7. When the three factors are averaged together, Mauritiuss overall fiscal freedom score becomes 92.1.

Sources. Unless otherwise noted, the Index relies on the following sources for information on taxation, in order of priority: Deloitte, International Tax and Business Guide Highlights; International Monetary Fund, Staff Country Report, Selected Issues and Statistical Appendix, and Staff Country Report, Article IV Consultation, 20092012; PricewaterhouseCoopers, Worldwide Tax Summaries, 20092012; countries investment agencies; other government authorities (embassy confirmations and/or the countrys treasury or tax authority); and Economist Intelligence Unit, Country Commerce and Country Finance, 20092012.

For information on tax burden as a percentage of GDP, the primary sources (in order of priority) were Organisation for Economic Co-operation and Development data; Eurostat, Government Finance Statistics data; African Development Bank and Organisation for Economic Co-operation and Development, African Economic Outlook 2012; International Monetary Fund, Staff Country Report, Selected Issues, and Staff Country Report, Article IV Consultation, 20092012; Asian Development Bank, Key Indicators for Asia and the Pacific, 20092012; and individual contacts from government agencies and multinational organizations such as the IMF and World Bank.

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Fiscal Freedom – heritage.org

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

Read the rest here:

Fiscal year – Wikipedia

Fiscal year – Wikipedia

A fiscal year (or financial year, or sometimes budget year) is the period used by governments for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on a generally annual basis, but generally do not require that the reporting period be calendar year, 1 January to 31 December. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxation, such as income tax. Many annual government feessuch as Council rates, licence fees, etc.are also levied on a fiscal year basis, while others are charged on an anniversary basis.

The “fiscal year end” (FYE) is the date that marks the end of the fiscal year. Some companiessuch as Cisco Systems[1]end their fiscal year on the same day of the week each year, e.g. the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

The calendar year is used as the fiscal year by about 65% of publicly traded companies in the United States and for a majority of large corporations in the UK[2] and elsewhere, with notable exceptions being in Australia, New Zealand and Japan.[3]

Many universities have a fiscal year which ends during the summer, both to align the fiscal year with the academic year (and, in some cases involving public universities, with the state government’s fiscal year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organizations use a broadcast calendar as the basis for their fiscal year.

The fiscal year is usually denoted by the year in which it ends, so United States federal government spending incurred on 14 November 2018 would belong to fiscal year 2019, operating on a fiscal calendar of OctoberSeptember.[4]

The fiscal year for individuals and entities to report and pay income taxes is often known as the taxpayer’s tax year or taxable year. Taxpayers in many jurisdictions may choose their tax year.[5] In federal countries (e.g., United States, Canada, Switzerland), state/provincial/cantonal tax years must be the same as the federal year. Nearly all jurisdictions require that the tax year be 12 months or 52/53 weeks.[6] However, short years are permitted as the first year or when changing tax years.[7]

Most countries require all individuals to pay income tax based on the calendar year. Significant exceptions include:

Many jurisdictions require that the tax year conform to the taxpayer’s fiscal year for financial reporting. The United States is a notable exception: taxpayers may choose any tax year, but must keep books and records for such year.[6]

In some jurisdictions, particularly those that permit tax consolidation, companies that are part of a group of businesses must use nearly the same fiscal year (differences of up to three months are permitted in some jurisdictions, such as the U.S. and Japan), with consolidating entries to adjust for transactions between units with different fiscal years, so the same resources will not be counted more than once or not at all.[citation needed]

In Afghanistan, the fiscal year was recently[timeframe?] changed from 1 Hamal 29 Hoot (21 March 20 March) to 1 Jadi 30 Qaus (21 December 20 December). The fiscal year runs with the Afghan calendar, thus resulting in difference of the Gregorian dates once in a four-year span.[citation needed]

In Australia, a fiscal year is commonly called a “financial year” (FY) and starts on 1 July and ends on the next 30 June. Financial years are designated by the calendar year of the second half of the period. For example, financial year 2017 is the 12-month period ending on 30 June 2017 and can be referred to as FY2016/17. It is used for official purposes, by individual taxpayers and by the overwhelming majority of business enterprises.[10] Business enterprises may opt to use a financial year that ends at the end of a week (e.g., 52 or 53 weeks in length, and therefore is not exactly one calendar year in length), or opt for its financial year to end on a date that matches the reporting cycle of its foreign parent. All entities within the one group must use the same financial year.

For government accounting and budget purposes, pre-Federation colonies changed the financial year from the calendar year to a year ending 30 June on the following dates: Victoria changed in 1870, South Australia in 1874, Queensland in 1875, Western Australia in 1892, New South Wales in 1895 and Tasmania in 1904. The Commonwealth adopted the near-ubiquitous financial year standard since its inception in 1901.[11] The reason given for the change was for convenience, as Parliament typically sits during May and June, while it was difficult for it to meet in November and December to pass a budget.[11]

The Financial year is split into the following four quarters [12]

In Austria the fiscal year is the calendar year, 1 January to 31 December.

In Bangladesh, the fiscal year is 1 July to the next 30 June.

In Belarus, the fiscal year is the calendar year, 1 January to 31 December. [13]

In Brazil, the fiscal year is the calendar year, 1 January to 31 December.

In Bulgaria, the fiscal year is the calendar year, 1 January to 31 December, both for personal income tax[14] and for corporate taxes.[15]

In Canada,[16] the government’s financial year is 1 April to 31 March.(Q1 1 April – 30 June, Q2 1 July – 30 Sept, Q3 1 Oct – 31 Dec and Q4 1 Jan – 31 Mar)

For individual taxpayers, the fiscal year is the calendar year, 1 January to 31 December.

In China, the fiscal year for all entities is the calendar year, 1 January to 31 December, and applies to the tax year, statutory year, and planning year.[citation needed]

In Colombia, the fiscal year is the calendar year, 1 January to 31 December.

In Costa Rica, the fiscal year is 1 October to 30 September.

In the Arab Republic of Egypt, the fiscal year is 1 July to 30 June.[citation needed]

In France, the fiscal year is the calendar year, 1 January to 31 December, and has been since at least 1911.[17]

In Greece, the fiscal year is the calendar year, 1 January to 31 December.

In Hong Kong,[18] the government’s financial year runs from 1 April to 31 March.

In India, the government’s financial year runs from 1 April to 31 March. It is abbreviated as FY18.[19][20]

Companies following the Indian Depositary Receipt (IDR) are given freedom to choose their financial year. For example, Standard Chartered’s IDR follows the UK calendar despite being listed in India. Companies following Indian fiscal year get to know their economical health on 31 March of every Indian financial or fiscal year.

The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire.[21][22] Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.[23]

In 1984, the LK Jha committee recommended adopting a fiscal year that ran from 1 January to 31 December. However, this proposal was not adopted by the government fearing possible issues during the transition period.[23] A panel set up by the NITI Aayog in July 2016, recommended starting the next fiscal year from 1 January to 31 December after the end of the current five-year plan.[24]

On 4 May 2017, Madhya Pradesh announced that it would move to a January-December financial year, becoming the first Indian state to do so.But later it dropped the idea.[25]

In Indonesia, the fiscal year is the calendar year, 1 January to 31 December.[26]

In Iran, the fiscal year usually starts on 21 March (1st of Farvardin) and concludes on next year’s 20 March (29th of Esfand) in Solar Hijri calendar [27]

Until 2001, the fiscal year in Ireland was the year ending 5 April, as in the United Kingdom. From 2002, to coincide with the introduction of the euro, it was changed to the calendar year, 1 January to 31 December. The 2001 tax year was nine months, from April to December.[28]

In Israel, the fiscal year is the calendar year, 1 January to 31 December.[29]

In Italy, the fiscal year is the calendar year, 1 January to 31 December. It was changed in 1965, before which it was 1 July to 30 June.[citation needed]

In Japan,[30] the government’s financial year is from 1 April to 31 March. The fiscal year is represented by the calendar year in which the period begins, followed by the word nendo (); for example the fiscal year from 1 April 2017 to 31 March 2018 is called 2017nendo.

Japan’s income tax year is 1 January to 31 December, but corporate tax is charged according to the corporation’s own annual period.[citation needed]

In Macau, the government’s financial year is 1 January to 31 December.

In Mexico, the fiscal year is the calendar year, 1 January to 31 December.

In Myanmar,[31] the fiscal year is 1 October to 30 September.

In Nepal, the fiscal year is 1 Shrawan (4th month of Bikram calendar) to 31 Ashad (3rd month of Bikram calendar). Shrawan 1 roughly falls in mid-July.[32]

In New Zealand, the government’s fiscal[33] and financial reporting[34] year is 1 July to the next 30 June[35] and applies also to the budget. The company and personal financial year[36] is 1 April to 31 March and applies to company and personal income tax.

The Pakistani government’s fiscal year is 1 July of the previous calendar year and concludes on 30 June. Private companies are free to observe their own accounting year, which may not be the same as government’s fiscal year.[37]

In Portugal, the fiscal year is the calendar year, 1 January to 31 December.

In Qatar, the fiscal year is from 1 January to 31 December.

In Romania, the fiscal year is the calendar year, 1 January to 31 December.[38]

In Russia, the fiscal year is the calendar year, 1 January to 31 December.[17]

The fiscal year for the calculation of personal income taxes is 1 January to 31 December.[citation needed]

The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.[citation needed]

Corporations and organisations are permitted to select any date as the end of each fiscal year, as long as this date remains constant.[citation needed]

In South Africa, the fiscal year for the Government of South Africa is 1 April to 31 March.[citation needed]

The year of assessment for individuals covers twelve months, 1 March to the final day of February the following year. The Act also provides for certain classes of taxpayers to have a year of assessment ending on a day other than the last day of February. Companies are permitted to have a tax year ending on a date that coincides with their financial year. Many older companies still use a tax year that runs from 1 July to 30 June, inherited from the British system. A common practice for newer companies is to run their tax year from 1 March to the final day of February following, to synchronize with the tax year for individuals.[citation needed]

In South Korea, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In Spain, the fiscal year is the calendar year, 1 January to 31 December.[39]

In Sweden, the fiscal year for individuals is the calendar year, 1 January to 31 December.[40]

The fiscal year for an organisation is typically one of the following:

However, all calendar months are allowed. If an organisation wishes to change into a non-calendar year, permission from the Tax Authority is required.[41][42]

In Taiwan, the fiscal year is the calendar year, 1 January to 31 December. However, an enterprise may elect to adopt a special fiscal year at the time it is established and can request approval from the tax authorities to change its fiscal year.[43]

In Thailand, the government’s fiscal year (FY) is 1 October to 30 September of the following year.[44] For individual taxpayers it is the calendar year, 1 January to 31 December.

In Ukraine, the fiscal year is the calendar year, 1 January to 31 December.[45]

In the United Arab Emirates, the fiscal year is the calendar year, 1 January to 31 December.[citation needed]

In the United Kingdom,[46] the financial year runs from 1 April to 31 March for the purposes of government financial statements.[47] For personal tax purposes the fiscal year starts on 6 April and ends on 5 April of the next calendar year.[48]

Although United Kingdom corporation tax is charged by reference to the government’s financial year, companies can adopt any year as their accounting year: if there is a change in tax rate, the taxable profit is apportioned to financial years on a time basis.[citation needed]

A number of major corporations that were once government-owned, such as BT Group and the National Grid, continue to use the government’s financial year, which ends on the last day of March, as they have found no reason to change since privatisation.[citation needed]

The 5 April year end for personal tax and benefits reflects the old ecclesiastical calendar, with New Year falling on 25 March (Lady Day), the difference being accounted for by the eleven days “missed out” when Great Britain converted from the Julian Calendar to the Gregorian Calendar in September 1752 (the British tax authorities, and landlords were unwilling to lose 11 days of tax and rent revenue, so under provision 6 (Times of Payment of Rents, Annuities, &c.) of the Calendar (New Style) Act 1750, the 17523 tax year was extended by 11 days). From 1753 until 1799, the tax year in Great Britain began on 5 April, which was the “old style” new year of 25 March. A 12th skipped Julian leap day in 1800 changed its start to 6 April. It was not changed when a 13th Julian leap day was skipped in 1900, so the start of the personal tax year in the United Kingdom is still 6 April.[49][50][51]

The United States federal government’s fiscal year is the 12-month period ending on 30 September of that year, having begun on 1 October of the previous calendar year. In particular, the identification of a fiscal year is the calendar year in which it ends; thus, the current fiscal year is 2018, often written as “FY2018” or “FY18”, which began on 1 October 2017 and which will end on 30 September 2018.

Prior to 1976, the fiscal year began on 1 July and ended on 30 June. The Congressional Budget and Impoundment Control Act of 1974 made the change to allow Congress more time to arrive at a budget each year, and provided for what is known as the “transitional quarter” from 1 July 1976 to 30 September 1976. An earlier shift in the federal government’s fiscal year was made in 1843, shifting the fiscal year from a calendar year to one starting on 1 July.[52]

For example, the United States government fiscal year for 2018 is:

State governments set their own fiscal year. It may or may not align with the federal calendar. For example, in the state of California, the fiscal year runs from 1 July to 30 June each year.[53]

The tax year for a business is governed by the fiscal year it chooses. A business may choose any consistent fiscal year that it wants; however, for seasonal businesses such as farming and retail, a good account practice is to end the fiscal year shortly after the highest revenue time of year. Consequently, most large agriculture companies end their fiscal years after the harvest season, and most retailers end their fiscal years shortly after the Christmas shopping season.

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Fiscal year – Wikipedia


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