Tax Year vs Calendar Year vs Fiscal Year in Canada

2012-03-31


Tax Report in Canada is very important. Every year, each Canadian and valid resident has to report tax.

When report tax, we need to know some concepts, here we talk about Tax Year, Calendar Year and Fiscal Year in Canada.

Tax Year:

In Canada, normally Tax Year means the year period of income tax reporting. It very similar with Fiscal Year. In Canada, a Tax Year start from January 1 to December 31.

The amount of income tax that an individual must pay is based on the amount of their taxable income (income earned less allowed expenses) for the tax year.

Fiscal Year:

A fiscal year (or financial year, or sometimes budget year) is a period used for calculating annual ("yearly") financial statements in businesses and other organizations. In many jurisdictions, regulatory laws regarding accounting and taxation require such reports once per twelve months, but do not require that the period reported on constitutes a calendar year (that is, 1 January to 31 December). Fiscal years vary between businesses and countries. The "fiscal year" may also refer to the year used for income tax reporting.

(above from Wikipedia)

Calendar Year:

Calendar Year is from Calendar, it is start from January 1 to December 31 normally. Please read Wikipedia for more detail.

 

Above all, in Canada, looks like the period of Tax Year, Fiscal Year and Calendar Year are the same.