What does 'Accounting Period' mean, and is it the same as the 'Tax Period'?

An Accounting Period (or financial year) is the 12-month cycle a company uses to prepare its financial statements under recognised accounting standards — whether that's January to December or another cycle such as April to March, as set out in its trade license or founding documents. There's no single 'correct' accounting period for every business; each company simply follows the cycle it adopted from the start.

The key point is that corporate tax law doesn't impose a separate tax year of its own — it simply takes the same accounting period the company already closes its books on and treats that as the tax period. So an owner doesn't need to hunt for a distinct 'tax year'; if the license and financial statements close in December, that's also exactly when the tax period ends. Changing the accounting period later requires formal approval and affects the transition period. RASEEKH confirms the two line up correctly from day one of registration.