Fiscal year and calendar year

A fiscal year usually spans twelve months, just like the calendar year. However, in connection with the founding of a company, this does not necessarily have to be the case.

In the first year after the company has been established, the new entrepreneur can choose whether they want a short or a long fiscal year.‍

Example: The founding date is July 1. The young entrepreneur can choose whether they want a short year (6 months) or a long year (18 months) as their first fiscal year.

For tax considerations, it may be worthwhile to choose a long year, as the start-up phase is often associated with numerous investments. These can be offset against income in the tax return.

For each individual case, the respective cantonal tax law determines how long the first fiscal year can last at most. In the canton of Zurich, for example, it is 23 months.