How to file annual information returns - companies and organisations
Employers, banks, and other third-party filers with the information-reporting requirement are expected to file an annual information return to the Tax Administration. Annual information returns should be filed without prompting. It should be noted that the information content of the pre-completed tax return form (distributed to individual taxpayers) is mostly based on the inbound details received from third-party filers.
For precise information (in Finnish) for each form of corporate entity:
Taxation is largely based on the processing of third-party information. The pre-completed tax return form is pre-filled with wage information and details on interest payments on loans. Information is filled with the figures from employers and banks to the Tax Administration. Electronic filing services have been made available to third-party filers with the annual information-reporting requirement.
The information-reporting requirement is extensive. It not only concerns employers and banks but also pension institutions, insurance companies, investment fund companies and trade unions. Furthermore, any company that distributes dividends should file an information return. It should additionally be noted that if a private individual has employed someone, he/she will have the obligation to file an employer payroll report.
The annual information return should cover the details that have an effect on the tax assessment of another taxpayer. This includes payments in cash that the filer has made independently or on behalf of another payer. It also includes details on tax-deductible payments that the filer has recorded, as they will confirm the right of deduction for another taxpayer. In addition, some holdings of assets and property are included in the scope of the information-reporting requirement.
- For purposes of reporting, payments in cash not only covers actual payments but also noncash benefits; including wages and fringe benefits, pension benefits, dividends, profit shares and interest payments of shares in investment funds.
- Tax-deductible payments include amounts withheld on employees' wages and on other payments, and premiums paid for pension insurance and unemployment insurance contracts.
- Examples of assets and property to be reported include holdings of fund shares and value shares in an investment fund.