Tax year

The one-year window a tax bill is calculated over

In detail

It decides which twelve months a gain or loss belongs to, and the bill is worked out per window. A sale falling either side of the boundary meets a different set of gains to offset against. Some losses cannot cross the boundary at all, so the dates are fixed by law.

Example

Where the year runs 1 January to 31 December, a sale on 30 December and one on 2 January fall in different years.

Differences by country

Japan — For individuals in Japan the tax year runs from 1 January to 31 December.

South Korea — For individuals in Korea the tax year runs from 1 January to 31 December (Income Tax Act, Article 5).

Related terms

Tax return Loss carryforward Offsetting losses

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For learning, not investment advice. Decisions are your own.