Taxpayer Identification Numbers to be introduced 2012

Tax Administration Bulletin, 10/18/2011

The Finnish government has passed a proposal on 5 October 2011 to the Finnish Parliament suggesting new tax rules that implement Taxpayer Identification Numbers, TINs.  The TIN system has also been referred to in the political program of the present government as one of the concrete measures that will permit the authorities to combat the underground economy.  

The TINs will be introduced in 2012, and distributed to all taxpayers in Finland in connection with the mailings of the new 2012 tax cards (employees' withholding allowance certificates).  No date of birth or personal identity number is visible in the TIN itself.  

All employees within the sector of building, construction and installation will be registered with their TINs in a public register maintained by the Tax Administration.  The mandatory badge to be worn by everyone working at construction sites will have the TIN printed on it.  Furthermore, the obligation to monitor the use of badges is to be extended; the monitoring requirement will thus not only concern the builder-developer but also the main contractor and all the employers within the sector, who will be responsible for controlling their own employees.

Within the building sector, the TIN registration process will facilitate the tax control of the economic activities and help monitor the movement of construction workers.  Foreign workers will be issued a TIN when they submit an application to the tax office for a personal identity number. Workers will have the obligation to always give their TIN number to their employer.

Construction sites that have started before the amendment of tax rules comes into force will have a transition period of six months permitting the use of identity badges as required by current work-safety legislation.  

Further information and guidance regarding the use of TIN will be released during the year 2012.  

For more information:

• Text of the government proposal: Hallituksen esitys Eduskunnalle laiksi veronumerosta ja rakennusalan veronumerorekisteristä sekä eräiksi siihen liittyviksi laeiksi (Eduskunta.fi)
• Text of the Budget proposal 2012 regarding new tax rules (VM.fi)
• Text of the press release regarding combat against the underground economy 31 March 2011 (www.tem.fi). 
• The working group in charge of the report on combatting the underground economy made several suggestions for action that will discourage non-compliance within the building sector, the hotel sector and the restaurant-catering sector.  The political program of the present government of Prime Minister Jyrki Katainen (22.6.2011 www.vm.fi) comprises 18 concrete measures aimed against the underground economy.  Three of them concern the building sector, and two of them concern tax assessment procedures.