What is 'Nendo' (年度)? Japan's Fiscal Year Explained

A practical guide to Japan’s “fiscal year” for foreign residents and overseas business partners

If you live in Japan—or you do business with Japanese companies—“nendo” (年度 ねんど) will show up everywhere: on government programs, school notices, project plans, and budget documents. The confusion usually comes from two facts:

1. A “year” can mean different 12-month windows (calendar year vs fiscal year vs school year vs corporate year), and
2. Japan often labels a fiscal year by its starting year, even though it ends the following calendar year.

This article is designed to be practical: it tells you exactly how to interpret “Reiwa 6 nendo” (令和6年度) and how to communicate clearly with Japanese counterparts.

Definition: “Year” (calendar year) vs “nendo” (年度)

In Japanese legal usage, “nendo” commonly appears as:

• Accounting/Fiscal year: kaikei nendo (会計年度 かいけいねんど) — mainly for government accounts
• Business year: jigyō nendo (事業年度 じぎょうねんど) — for corporations and other organizations

Key Points

1) Japan’s national and local government fiscal year is (usually) fixed: Apr 1 → Mar 31

For government budgeting and public programs, the default “nendo” is April 1 to March 31 of the next year.

This is why you’ll often hear “the fiscal year ends in March” in everyday Japan.

2) School years are also (mostly) Apr 1 → Mar 31

For example, the school year in elementary school begins April 1 and ends March 31 of the following year.

(Universities can vary, but the “April–March” pattern is a major reason “nendo” feels like it always means April–March in Japan.)

3) Corporate fiscal years are not universal

Private companies often choose their own business year (事業年度) via their corporate governance documents, and it is not generally mandated (though some regulated industries have special rules).

So: “nendo” in a company context may not be April–March.

4) Many personal tax processes are calendar-year based (Jan 1 → Dec 31)

A common source of confusion is that government budgeting uses Apr–Mar, while personal income tax is based on income earned Jan–Dec.

5) “Reiwa 6 nendo” (令和6年度) is a label, not a date range—convert it immediately

• Reiwa (令和) began on May 1, 2019
• Reiwa 6 = 2024

So, in the most common government meaning:

Reiwa 6 nendo (令和6年度) = Apr 1, 2024 → Mar 31, 2025

Comparison: The “four different years” you’ll encounter in Japan

Why overseas partners get confused

• In many countries, “FY2024” often means “the fiscal year ending in 2024.”
• In Japan (especially government/public programs), “FY2024” typically means “the fiscal year starting in 2024” (Apr 2024–Mar 2025).

This mismatch is the root of many avoidable misunderstandings.

Examples

Example 1: Converting “令和6年度” into dates

1. Convert era year → Western year: Reiwa 6 = 2024
2. Apply Japan’s standard government fiscal year window: Apr 1 → Mar 31

Result: Reiwa 6 nendo (令和6年度) = Apr 1, 2024 → Mar 31, 2025

Example 2: How Japanese government documents often write FY

Some official pages helpfully state the period explicitly:

Contract period: April 1, 2025 to March 31, 2026 (FY 2025)

This is an excellent pattern to copy in your own writing.

Example 3: “Why is my tax year different from the ‘fiscal year’ everyone talks about?”

• Your income tax year (for filing) is based on income earned Jan 1 → Dec 31
• Many government budgets and programs operate on Apr 1 → Mar 31

So it is normal to be dealing with two different “years” at the same time.

Practical Templates (Copy/Paste)

1) Contract / SOW wording (recommended)

Use both a label and a date range:

• “FY2024 (Japan government fiscal year: 1 Apr 2024 – 31 Mar 2025)”
• “Reiwa 6 nendo (令和6年度): 1 Apr 2024 – 31 Mar 2025”

2) Email clarification lines (overseas partner → Japan)

• “Just to confirm, when you say FY2024, do you mean Apr 1, 2024 to Mar 31, 2025 (Japan government fiscal year)?”
• “Could you share the exact date range for this fiscal year in your organization (start date and end date)?”

3) Japanese clarification lines (if you want to ask in Japanese)

• 「FY2024 は 2024年4月1日〜2025年3月31日 の理解で合っていますか？」
• 「御社の 事業年度（年度） の開始日と期末日はいつですか？」

“No-Confusion” Rules (Recommended)

If your goal is to help foreign residents and overseas counterparts, follow these three rules:

1. Never write “FY/年度” without a date range.
2. Always specify whether it is: government fiscal year, school year, or your company’s fiscal year.
3. If era years appear (Reiwa/Heisei), convert once and show both (e.g., “Reiwa 6 (2024)”).

Glossary

Related Pages

• Chinese Zodiac (Eto)
• Japanese Era Names (Gengō)
• Age Reference Chart