To change your company's financial year-end, the directors pass a resolution and file a CoR25 notice with CIPC while the current financial year is still running. The Companies Act lets you do this once in a financial year, and the changed year may not be longer than 15 months. You then update the year-end with SARS, because your company's tax year follows its financial year. That affects your provisional tax dates and your next ITR14.

Why companies change their year-end

Common reasons include:

  • Aligning with a group. A new subsidiary usually needs the same year-end as its holding company. See registering a subsidiary.

  • Seasonal businesses. It's easier to close the books in a quiet month than in peak season.

  • Simplicity. Most small companies use end of February, the same as the individual tax year. That makes planning salaries, dividends and provisional tax easier.

  • A mistake at registration. The year-end chosen when the company was registered didn't suit the business.

The rules

Under section 27 of the Companies Act:

  • Every company must have a financial year-end, set out in its registration documents.

  • The board can change it, but only once in any financial year.

  • The notice must be filed while the current financial year is still running, and the new year-end can't be a date that has already passed. You can shorten the current year or lengthen it.

  • The changed (transitional) financial year may not be longer than 15 months.

Example: Your company's year-end is 30 June. On 1 November 2026 you decide to move to 28 February. The current year then runs from 1 July 2026 to 28 February 2027, which is 8 months, and every year after that ends in February. Alternatively, moving from 30 June to 30 September 2027 would make the current year run from 1 July 2026 to 30 September 2027, which is 15 months, the maximum.

Step 1: Pass a board resolution

The directors resolve to change the financial year-end to the new date. Keep the signed resolution with the company's records. See our guide to board resolutions.

Step 2: File the CoR25 with CIPC

  1. Log in to CIPC eServices.

  2. Complete the CoR25 (Notice of Change of Financial Year End) for the company.

  3. Pay the R100 CIPC filing fee from your customer account.

  4. Submit before the current financial year ends. A filing made after the year-end has passed can't change that year.

  5. Keep the CIPC confirmation.

If CIPC requests additional information, respond promptly, because the change must be recorded while the current year is still open.

Note: Changing your year-end does not change your annual return date. CIPC annual returns are due each year within 30 business days after the anniversary of your registration date, whatever your financial year-end. See annual returns.

Step 3: Update SARS

A company's year of assessment for income tax is its financial year, so SARS needs to know about the change.

  • Update the company's registered details on SARS eFiling (or through a SARS branch appointment if the online update isn't available for your case) to show the new financial year-end.

  • Recalculate your provisional tax dates. The first provisional payment is due six months into the year of assessment, and the second at the end of it. A shorter or longer transitional year moves both dates.

  • Plan the transitional ITR14. The return for the changed year covers a period that is shorter or longer than 12 months. Some calculations, such as the small business corporation rates and certain allowances, may need to be apportioned. See the ITR14 company tax return.

Your VAT periods don't change. VAT categories are separate from your financial year.

Knock-on effects to plan for

  • Annual financial statements. You'll prepare AFS for the transitional period, covering fewer or more than 12 months. Comparative figures won't be for a full year, so label them clearly.

  • Audit or independent review. If your company needs one, tell your auditor or reviewer early. See audit or independent review.

  • Payroll and year-end processes. Your PAYE tax year stays March to February, even if the company's financial year changes.

  • Bank covenants and loan agreements. Some require you to deliver financial statements by set dates. Check them.

  • Dividends and salaries. A shorter transitional year can be a chance to plan how much you pay yourself. Speak to your accountant.

Common mistakes

  • Filing too late. The CoR25 must be filed while the current year is running.

  • Going over 15 months. The transitional year can't be longer than 15 months. If you need a bigger shift, change it over two years.

  • Forgetting SARS. CIPC and SARS don't share this change automatically. If SARS still has the old year-end, your provisional tax and ITR14 will be issued for the wrong periods.

  • Changing it twice. You can only change the year-end once in a financial year.

We'll handle it for you

Smartbook can file the CoR25, update SARS, reset your provisional tax dates and prepare the transitional-year company tax return.

Frequently asked questions

How often can I change my company's financial year-end? Once in any financial year, and the changed year may not be longer than 15 months.

Can I change the year-end after it has passed? No. The change must be filed while the current financial year is still running, and you can't pick a new year-end date that has already passed.

Does changing my year-end change my annual return date? No. Annual returns are linked to your company's registration anniversary, not its financial year-end.

What year-end should a small company choose? Many small companies choose 28 February because it matches the individual tax year, which keeps salary, dividend and provisional tax planning simple. But choose what suits your business cycle.

Do I need SARS's permission? You need to update SARS so that your tax periods match your new financial year. It's best to let your accountant handle this alongside your provisional tax.