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50B Capital income and deductions ‒ Instructions

Check the pre-completed tax return.  If the information on your capital income is incorrect or incomplete, make the corrections in MyTax or on this form.

The form and further information are available on the Forms page. The return address is on the first page of the form.

You can fill in or correct the following information related to capital income on this form:

  • dividends and co-operative surplus
  • your pensions taxable as capital income 
  • your income from a long-term savings agreement (PS agreement)
  • other capital income (see section 3)

In addition to capital income, you can also report the related deductions, such as voluntary pension insurance contributions or interest expenses for a home loan, or for a loan relating to production of income. See Table of contents.

You should also use this form to add or correct details on assets in your tax return. Section 6 describes the reportable assets in more detail.

Also use this form when you submit a claim for adjustment after the Tax Administration has finished your tax-assessment process for the year. Fill in a claim for adjustment and attach this form to it. Claims for adjustment can also be submitted in MyTax. Using MyTax eliminates the need for paper forms.

If you are making corrections to previously provided information or are claiming an adjustment, fill in the form section to which you are making changes.

Other income ‒ Select the correct form

If you wish to add or correct other information, please use the correct form:

  • rental income: Form 7H (Rental income from housing companies), 7K (Rental income from real estate) or 7L (Rental income from other property)
  • capital gains and capital losses from other property: Form 9
  • capital gains and capital losses from trading with securities: Form 9A
  • shareholder loan and its repayments: Form 13.

Report capital income from foreign sources on Form 16B (Details on income from foreign sources, capital income).

Contents

1 Personal details and tax year
2 Dividends and surplus
3 Capital-income pensions, long-term savings agreement payments, and other capital income
4 Deductions from capital income
4.1 Expenses for management and safekeeping of securities
4.2 Voluntary pension insurance or long-term savings agreement payments
4.3 Other expenses incurred in acquiring or maintaining capital income
4.4 Deductible interest and changes to loan details
5 Credit for a deficit in capital income and child increase thereof
6 Changes to assets
7 International situations

1 Personal details and tax year

Enter your name and personal identity code.

Also enter the tax year, i.e. the year for which you are reporting income or deductions.

2 Dividends and surplus

Report the dividends and surplus here that are missing from or incorrect in your pre-completed tax return. Report the following information on dividends or surplus:

  • payer's business ID
  • payer's name
  • gross income per year
  • withholding tax on the income during the year
  • type of dividend:
    • dividend from listed companies
    • dividend from non-listed companies
    • profit surplus from listed cooperatives
    • profit surplus from a cooperative with at least 500 members
    • profit surplus from a cooperative with less than 500 members

The Tax Administration will divide the dividends you have earned from non-listed companies into capital income, and earned income and calculate the taxable portion of the dividends.

You should also fill in form 13 (Account of shareholder loans and distribution of earned and capital income for dividends) or report the information in MyTax if

  • you are a majority shareholder and you have used a residence included in the assets of the company that paid the divided, or you have taken out a shareholder loan from the company
  • you are an owner-shareholder and you have taken out a shareholder loan from the company.

This information affects what portion of the dividend is capital income and what is earned income.

Report dividends and surplus earned from foreign sources using Form 16B (Details on income from foreign sources, capital income).

3 Capital-income pensions, long-term savings agreement payments, and other capital income

Fill in the amounts of your pension income treated as income from capital, your long-term savings (PS) income, or other capital income, missing from your tax return, or correct any of the information in it. You should report your capital income that consists of:

  • interest income (however, do not enter interest on ordinary bank deposits or other interest subject to tax withheld at source)
  • any received aftermarket bonus
  • the annual return you received on profit-sharing of an investment fund
  • profits from selling timber, if the trees were felled on a plot of land (e.g. at a summer cottage)
  • profits from selling soil material
  • exchange rate gains
  • tax relief for investment activities, treated as capital income, which had been deducted in your assessment for a previous tax year.

Report the following details on the income:

  • payer's personal identity code or Business ID
  • payer's name
  • gross income per year
  • withholding tax on the income during the year
  • an account of the income you are reporting (such as interest income)

4 Deductions from capital income

4.1 Expenses for management and safekeeping of securities

If any expenses for management and the safekeeping of securities are missing from your pre-completed tax return or if the expenses are wrong, enter the total of all management and safekeeping expenses you have paid during the year under "Expenses for management and safekeeping of securities/year".

The threshold amount for deducting expenses for management and safekeeping of securities and book-entries is €50. If the total management and safekeeping expenses exceed €50, enter the expenses in full, i.e. do not deduct the threshold amount.

Also enter the name and Business ID of any recipient whose information was missing or incorrect.

4.2 Voluntary pension insurance or long-term savings agreement payments

Enter any payments made to a voluntary pension insurance or long-term savings (PS) agreement that are missing from your pre-completed tax return, or correct any of the information in it. Enter the total of what you paid during the year under "Voluntary pension insurance or long-term savings agreement payments/year".

Also enter the name and Business ID of the payment recipient whose information was missing or incorrect.

The deduction can only be made by the spouse who is insured or who is entitled to the assets. The deduction cannot be transferred to your spouse's tax assessment.

Pension insurance premiums can be deducted if the insurance company operates in Finland or another EEA member state.

Read more about long-term savings agreements and voluntary pension insurances (in Finnish and Swedish, link to Finnish)

4.3 Other expenses incurred in acquiring or maintaining capital income

If other expenses for the production of your capital income are missing from your pre-completed tax return, or if the expenses are wrong, enter the total expenses under "Other expenses incurred in acquiring or maintaining income/year".

Information to report in this section may include

  • an aftermarket bonus which you have paid to the seller when purchasing a bond
  • expenses, other than interest expenses, resulting from loans you have taken in order to produce income from capital.

Please provide a more detailed account of the expenses under "Please explain how the expenses have arisen".

4.4 Deductible interest and changes to loan details

Report any interest payments and loan details missing from your tax return, or correct the information provided in it. Check that the intended use of the loan is entered correctly on your tax return because this will affect the deduction of interest in your taxation.

Home loan interest

This section is for reporting interest on a loan for your own permanent home or your family's permanent home. Report the following information:

  • amount of interest in euros
  • loan code
  • the balance that remains at the end of the tax year
  • the name of the bank or other lender.

First-time homebuyer's interest expenses on their home loan

This section is for reporting interest on a loan for your first permanent home, or your family's first permanent home.

Interest is considered a first-time buyer's home loan interest if the following conditions are fulfilled:

  • You or your family live in the residence.
  • You own at least one half of the residence.
  • You have not previously owned at least one half of a residence that was your permanent residence.

Report the following details on the loan:

  • amount of interest in euros
  • loan code
  • the balance of the loan at the end of the tax year
  • the name of the bank or other lender

The deficit credit for the interest on a first-time buyer's home loan is 2% higher than the deficit credit for other home loans. You can receive the higher credit for no more than the first year of use of the home and the following 9 years. Read more on page Credit for deficit in capital income (in Finnish and Swedish only).

Interest on a loan relating to acquiring or maintaining income

This section is used for reporting interest on loans relating to taxable income. Such loans include:

  • a loan relating to rental income (such as a loan for acquiring a buy-to-let property)
  • a loan relating to capital income from forestry
  • a loan taken out by a majority shareholder for buying the shares

Also report the interest on a deductible principal debt here. Read more about Interest in income taxation (in Finnish and Swedish, link to Finnish).

If you are a shareholder in a partnership treated as a single entity for tax purposes, also report any debts relating to the partnership's agricultural or forestry activities or other income here. However, you should report interest on loans relating to the activities of an agricultural partnership under "Shareholder's interest payments relating to agricultural partnership and request for deduction of losses from capital income".

Give the following details:

  • amount of interest in euros
  • loan code
  • the balance of the loan remaining at the end of the tax year
  • the name of the bank or other lender
  • purpose of use of the loan.

Interest on a loan for acquiring a share in a business partnership

If you are a shareholder in a business partnership and have taken out a loan for buying your shares in it, fill in the following information:

  • amount of interest in euros
  • the name of the bank or other lender
  • loan code
  • the Business ID of the business partnership
  • the balance of the loan at the end of tax year

Shareholder's interest payments relating to agricultural partnership and request for deduction of losses from capital income

If you are a shareholder in an agricultural partnership, you can deduct the partnership's losses from your capital income. If the agricultural partnership no longer engages in agricultural activities, as an exception you can deduct confirmed losses from previous years from your capital income. If you wish to deduct losses from your capital income, enter your share of the loss to be deducted here, either as a percentage or in euros. You must demand the deduction of losses from your capital income before the taxation for the tax year ends. Read more about the losses of an agricultural partnership (in Finnish and Swedish, link to Finnish).

In addition, indicate how much interest you have paid on any loan you have taken out as a shareholder for financing the activities of an agricultural partnership. Give the following details:

  • the amount of interest in euros
  • loan balance at the end of the tax year
  • the agricultural partnership's Business ID.

Other loans

This section is for reporting a loan that is missing from your pre-completed tax return, or for correcting the information, if the loan is an "other" loan and its interest is not deductible. Such a loan has been taken out for a purpose other than purchasing a residence or for activities for the production income, such as for financing your studies or for living expenses. Check the box according to the type of entry: an addition or change to the loan details. You should only enter a loan where the lender is:

  • a bank or other credit or financial institution
  • the state of Finland
  • a municipality
  • an insurance company or a pension provider
  • an employee bank (personnel service office)
  • your employer

Give the following details:

  • the name of the bank or other lender
  • the remaining balance of loan at the end of the tax year

5 Credit for a deficit in capital income and child increase thereof

A deficit is created if deductions from capital income (such as interest on a home loan) are greater than the capital income itself. From this deficit, 30% (interest for first-time home 32%) is deducted as a deficit credit for the taxes on earned income.

The maximum amount of deficit credit is €1,400. However, the maximum amount is higher if you have underage children. In this case, a so called child increase is added to the maximum amount. The increase is €400 for one child and a total of €800 for two or more children (children must be under 18).

If you request that the child increase of credit for deficit is made in full in your own tax assessment, indicate for how many children the increase should be made.

If you have more than one child, you can divide the increase with your spouse so that you both receive a €400 child increase. If you only have one child, the increase cannot be divided. You and your spouse can choose to whose taxation the child increase should apply.

You can request that the credit for deficit be transferred to your spouse if you have no tax imposed on your income, or if the amount of income tax is insufficient for the full credit. In such a case, you should check the box "Any credit for deficit in capital income that cannot be deducted from my taxes must be transferred to my spouse for deduction"

You must make the request for the transfer of the credit for deficit to your spouse before the end date of your tax assessment for the tax year.

Read more about deficit credits (in Finnish and Swedish, link to Finnish).

6 Changes to assets

In addition to income, you also have to give details on some of your assets. Assets to be reported include:

  • real estate, buildings on leased land and unseparated properties
  • shares in a housing company or mutual real estate company
  • shares in other companies and cooperatives (excluding ordinary shares in consumer cooperatives and cooperative banks)
  • shares in investment funds and UCITSs
  • other securities and book-entries (excluding bonds with interest earnings subject to tax at source or equivalent bonds in ETA countries)
  • percentage shares in a general partnership, limited partnership or other partnership
  • right of possession or usufruct to a real estate unit, to shares in a housing company, to shares in a real estate company, or to other securities.

You should report these assets even if they are located abroad.

Do not report other assets, such as private cars, boats or household assets.

Report the assets according to the situation at the end of the tax year. The value of the assets is not entered in the pre-completed tax return, nor do you need to report the values.

Type of asset: If you enter any information, check the box for the appropriate asset type: shares in a housing company or mutual real estate company, other assets or foreign assets.

Shares in a housing company: enter the Business ID of the housing company or real estate company, the apartment number, and your ownership interest as a percentage. In addition, the name and Business ID of the housing/real estate company must be entered under "More detailed account of assets". You should also provide an account of how the this information has changed.

Other assets and foreign assets: enter the number and ownership interest as a percentage. Enter any other details required to identify the assets under "More detailed account of assets". If you have any bonds and other receivables, indicate their nominal values.

Information on real estate is not reported on this form. If you need to correct or add information, log in to MyTax to make the corrections or submit the corrections on paper on Form 3743e, the Real estate tax return.

The assets of your business and/or trade must be reported on Form 5 and your assets used for agriculture on Forms 2 or 2Y.   (Forms 2, 2Y and 5 are tax returns).

7 International situations

I am asking to be considered non-resident under a tax treaty

Tick this box if you are considered a Finnish tax resident but your country of residence pursuant to the tax treaty is not Finland.

Read more on general and limited tax liability  (under Requesting nonresidency)

I am asking for limited tax liability

Tick this box if you live outside Finland and consider yourself a tax nonresident, i.e. that you have limited tax liability in Finland.

Read more on general and limited tax liability (under Requesting nonresidency)

Credit for taxes paid to foreign countries (reverse credit)

The standard practice under tax-treaty provisions is that the individual's country of residence will remove any double taxation. However, according to what is agreed in some treaties, elimination of double taxation on income is carried out in the country of source. This is called reverse credit.

In other words, if you live in Switzerland, Thailand or Italy and receive pensions, based on social security, from sources in Finland, fill in the tax you have paid to Switzerland, Thailand or Italy.

If you live in Spain and receive pensions from Finland, the 2019 tax year is the first year when you can ask for reverse crediting. Fill in the tax you have paid to Spain.

Read more about the reverse credit and the Spain-Finland tax treaty 

Date and sign the form.  Include your daytime telephone number.