6U Income tax return – Foreign corporate entity, Instructions for completing the tax return, 2022

Tax year 2022

• Foreign corporate entities: please complete income tax return 6B if your company is treated as a tax resident of Finland. Form 6U – onwards of the 2021 tax year – is only for the corporate entities that are nonresidents in Finland.
• When you complete the tax return and its enclosures, you must fill in all the spaces and lines that concern you.
• Enter all amounts of money with the cents included; do not round them out to the nearest euro.
• If your company has more than one accounting period ending in the 2022 calendar year, you must complete a set of tax return forms for each one of the ended accounting periods. The Tax Administration will combine the data from the different periods ending 2022.
• Please note that starting 2020, foreign companies (that submit their tax return on this form) are no longer treated as having a "personal income source" for purposes of income-tax assessment (this rule does not apply to non-profit organisations promoting the public good). For more information on the change relating to the "personal" source of income, see "guide on source-of-income rules for dividing the income taxes of certain corporate entities" – Eräiden yhteisöjen tulolähdejaon poistaminen (VH/1881/00.01.00/2019) (in Finnish and Swedish).
• Receipts of profits from partnerships: If your company received income in the form of profits from a partnership/consortium and you do not inform the Tax Administration of this income on time, a punitive tax increase may be imposed.
• Starting 2021, the deduction related to expenses for research and development is extended. See below: Additional deduction for research and development.
• Changes in the line of business are reported only in MyTax. Information on your line of business is saved in your “taxpayer details”. If you move on to a new line of business, you can inform the Tax Administration of it immediately. Enter the new, current line of business according to Standard Industrial Classification, TOL 2008.
• See the sector codes on the website of Statistics Finland
• As provided by law (the Act governing cross-border hybrid arrangements in corporate taxation — Laki eräiden rajat ylittävien hybridijärjestelyjen verotuksesta (1567/2019)), in accordance with the detailed rules, when a non-resident taxpayer has received income by virtue of his or her role as a partner in a reverse-hybrid partnership entity, the income is taxable as personal income of the non-resident taxpayer. Enter this type of income under “Taxable portion of profit shares”.
• See the list of enclosures

Further information will be given by (name, telephone number)

This line is for the name and phone number of an individual who can provide further information to the Tax Administration on the income tax return being filed.

Has activity in Finland (mainland) and Åland Islands

Tick this box if your company engages in business activities both in Åland Islands and on the mainland.

You must tick this box also if

• your company operates only in Åland Islands but its registered domicile is in mainland Finland, or
• its registered domicile is in Åland Islands and it operates in mainland Finland.

Enclose free-text information on how your profits/losses are divided between Åland Islands and mainland Finland. To give this information, indicate either the percentages or the €€ relating to Åland and mainland, respectively. The profits subject to tax should be the base. This means that to indicate the proportions represented by your Åland activities and your mainland activities, it is not acceptable to set up a calculation based on sales, turnover, net sales, etc.

Åland-domiciled corporate entities must pay municipal tax on all their income to the tax authority of Åland Islands. This rule is based on the provisions on municipal income tax (see Ålands författningssamling 119/2011).

Under the same provisions, an entity registered in mainland Finland must also pay municipal tax to Åland on the part of its income attributable to the operation in Åland. However, under the Finnish act on income tax (Tuloverolaki 1535/1992), all corporate entities must pay income tax at the 20-percent rate, the proceeds from which are distributed between the State of Finland, municipalities, and the parishes of churches. This would mean double municipal taxation for corporate entities operating in Åland Islands. This double taxation is eliminated either by the Provincial Government of Åland or by the Tax Administration, depending on the company's domicile.

2 Permanent establishment for purposes of income taxation

Tick the box for one, not both, of the following options:

• The company believes that a PE (permanent establishment) for income tax purposes is formed, or the company owns immovable property in Finland.
• The company believes that it should not be treated as having a PE for income tax purposes. Complete Form 80.

The company believes that a PE (permanent establishment) for income tax purposes is formed; or the company owns immovable property in Finland

Tick this box if a PE is formed for income tax purposes in Finland, or if your corporate entity owns immovable (or real estate) property in Finland, or if your corporate entity receives profit-shares of the income of a partnership or consortium in Finland.

• Generally, foreign companies must only pay Finnish tax on their income received from Finnish sources. However, if a foreign company has a permanent establishment in Finland, the foreign company becomes liable to pay tax on all the income attributable to that permanent establishment. “Permanent establishment” means a fixed place of business through which the company conducts some or all of its operations. Such a fixed place may be a place of corporate management, an office, a 'dependent agent', or it may be a construction project or an installation project that lasts longer than a threshold time limit defined in the applicable tax treaty.
• For example, if a foreign company owns real estate in Finland and this property also represents a source of income for the company, it must pay tax on the income received (under the provisions of § 10 of the act on income tax (TVL)).
• When completing the tax return, any profit-shares must be indicated if income, in the form of profit-sharing from a Finnish partnership or consortium, has been received; and your company is a general partner in that partnership/consortium. For example: a Finnish limited partnership operates a business in Finland, and a foreign company is a partner in the partnership. If income is received in the form of profit shares, it is taxable income, classified as business income.
• Further information on permanent establishments in income taxation
• More on permanent establishments for income tax purposes, (Income taxation of foreign corporate entities in Finland, record no of the original guide: A70/200/2018).

The company believes that it should not be treated as having a PE for purposes of income taxes

Tick the box if your company believes that it should not be treated as having a permanent establishment for income tax purposes in Finland. If you ticked the box, you must also complete and submit Form 80 (Account of local operations – Foreign corporate entity).

3 Further details

Information on current activities (the company does not conduct business)

MyTax: Does the company only have other activities than business operations?

This box is for informing the Tax Administration that your company does not, under the definition of § 1, subsection 1 of the act on the taxation of business income (Laki elinkeinotulon verottamisesta 360/1968 (EVL)), operate a trade or business.

If, in addition to its operation of a trade or business, your company also pursues other activities, it will still be regarded as an entity that operates trade or business under § 1, subsection 1. If instead, your company is entirely engaged in nonbusiness activities, it is regarded as an entity with no trade/business operation from the perspective of § 1, subsection 1. Examples of nonbusiness activities include a rental operation where the tenants are unassociated outside parties, or a passive investment operation involving the holding of corporate shares or other securities.

Financial statements comply with international standards

Tick this box if your P/L and balance sheet are compliant with the standards (IAS/IFRS or GAAP) (under the provisions of Chapter 7a, Accounting Act).

Has to prepare Transfer Pricing Documentation (§ 14 a, VML) (complete Form 78)

Tick this box if your company must prepare documentation on transfer pricing. If you ticked the box, you must also fill in Form 78 (Explanation of transfer prices).

The documentation is required if transactions have been made between group companies in an associated relationship (as provided in §14, act on assessment procedure (VML)), if the other party to the transaction is a foreign enterprise, or if a permanent establishment located in Finland is one of the parties, and its foreign parent is the other.

Parties to a transaction are in an “associated relationship” if one of them has a controlling interest and power over the other, or if there is a third party that can – either alone or together with a sphere of influence – control both of the parties to the transaction (§ 31.2, act on assessment procedure).

Transfer pricing documentation must be submitted by businesses that fulfil at least one of the following conditions:

• The company has at least 250 employees.
• It has more than €50 million of net sales and more than €43 million of balance-sheet total.
• It is an entity not regarded as a small or medium-size enterprise under the definition of the Commission Recommendation 2003/361/EC.
• When considering this condition, it must be taken into account that for most entities, the mere fact that it is part of an international group makes the small or medium-sized company operating in Finland liable to prepare transfer pricing documentation. When the threshold values regarding employees, net sales and balance-sheet total are looked into, the entire group is in focus because of the ownership circumstances.

Read more: “Transfer Pricing Documentation” – Siirtohinnoittelun dokumentointi (in Finnish and Swedish, record no. of the original guidance: A68/200/2018).

Has a branch office or a PE been incorporated as provided in §52d of act on business tax?

Tick this box if you have relinquished the assets and liabilities connected with a business unit (=transfered a business). The recipient should in that case be a limited company that will continue operating the business, and the payment to your entity must be made in the form of stock in the receiving company.

Or has the company transferred the business unit formed by a branch/PE as provided in §52d?

For more information on relinquishment of business units, see: Yritysjärjestelyt ja verotus – liiketoimintasiirto (dnro A163/200/2017)

Calculation of taxable income (act on business tax)

Enter your taxable revenue and tax-deductible expenditure, derived from business and other activities, in accordance with the provisions of the act on the taxation of business income (EVL) in the Tax accounting column of the ‘Calculation of taxable income’ The ‘Calculation of taxable income’ section may contain references to “business operation” and “business activity”. However, this is intended to mean all activity subject to tax under EVL.

The ‘Calculation of taxable income’ section has a separate Accounting column for any income and expense items where the amount recorded in the accounts may be different from the amount used for purposes of taxation.

Fill in both the columns even if the amounts were exactly the same.

To arrive at your net taxable income for the year, follow the instructions below. The revenues subject to tax of the "4 Business income" section are adjusted by deducting the expenditure in "5 Business costs".

The calculation of taxable income is only for the revenue and expenditure that relates to your business source of income, not other sources of income. The business source of income consists of the operation of a trade or business, as referred to in § 1.1 of the act on the taxation of business income, and of other activity if it is taxable in accordance with EVL, the act on the taxation of business income.

Your company’s personal source of income

Foreign corporate entities can only have a personal source of income if the corporate entity promotes the public good, i.e. is a non-profit organisation. Starting from the 2020 taxable year, the “other” activity of corporate entities is treated as relating to the entity’s business source of income (previously, the income from “other” activity was taxed as part of the personal source of income). The income is taxed according to the provisions of the act on the taxation of business income.

Credit institutions, investment service companies, and insurance companies

If you are one of the above, you are not expected to complete the Calculation of taxable income section and the summary of profit and loss (6 Taxable profits/Tax-deductible losses).

You must complete Form 77 instead in order to report the profit or loss from business activities.

Form 77 with instructions is found on tax.fi under Forms

Entering amounts of money

Enter the euros and the cents; do not round out the amounts, and do not use a plus or minus sign. The default rule is that any revenue will increase profit and any expense will reduce it. For this reason, plus and minus signs are not necessary. However, if you enter an amount that does not follow the logic of the above default rule, you must enter a minus sign (-) before the amount.
Example: A corporate taxpayer reports a net sales figure that is negative. Enter a minus sign in front of 1 Net sales (section 4 – Business income).

4 Business income

1 Net sales

Enter the net sales as recorded in your accounting books.

Net sales (=turnover) comprise the sales income from your primary operation, minus any discounts granted, minus VAT, and minus any other taxes that depend on sales volumes (Chapter 4, § 1, Accounting Act).

If your net sales contain any received dividends, you must report them in 3 Financial income (Receipts of dividends and profit surplus) and deduct them from the net sales figure.

Sales of goods and services, external

This line is for sales of goods and services relating to the PE's operations to outside customers i.e. not to group companies or undertakings, not to parties in an associated relationship.

Parties to a transaction are in an “associated relationship” if one of them has a controlling interest and power over the other, or if there is a third party that can – either alone or together with a sphere of influence – control both of the parties to the transaction (§ 31.2, act on assessment procedure).

Sales of goods and services to the parent/principal

Sales of goods and services relating to the PE's operations to other parties of the enterprise.

“Other parties of the enterprise” may refer to the principal company, the company’s other PEs in other countries, or branch offices.

Sales of goods and services to intra-group companies

Sales of goods and services relating to the PE's operations to other group companies.

“Group companies” refer to the parent company of the group and subsidiaries, as defined in the Accounting Act (Chapter 1, §6).

2 Other income from business activities

Capital gains for selling shares included in fixed assets

Accounting column:

Enter the total amount of capital gains from the selling of shares that had been part of your fixed assets, and your gains from liquidations, as it is on your accounting books.

Complete Forms 71A and 71B to break down the capital gains from selling shares included in fixed assets, and the capital gains from liquidations, as follows:

• Form 71A is for the items that have no effect on taxation, i.e. for the tax-exempt capital gains and non-deductible capital losses.
• Form 71B is for any capital gains and gains from liquidations that are subject to tax, and for tax-deductible capital losses and liquidation losses. Similarly, Form 71B is also for capital and liquidation gains and corresponding losses from shares in partnerships or consortia.

Tax accounting:

Transfer any taxable capital gains from selling shares included in fixed assets, and taxable gains from liquidations, also when they are related to partnership interests, as you had itemized and calculated them on Form 71B. Note: the value for this field is the result from subtraction of the gains/losses that can only be deducted from capital gains from the total capital gains and liquidation gains subject to tax.

Capital gains from selling shares included in fixed assets (not, however, shares in housing companies or real-estate companies) is tax-exempt income if the company has owned at least 10% of the sold or liquidated company for more than a year (§6 b and §51 d, act on the taxation of business income).

This means that gains from the selling of shares in housing companies and real-estate companies are taxable, the selling of shares held for a shorter time than one year are taxable, and gains from the selling of corporate stock when your ownership interest in the company had been below 10% are taxable, as well. If your company is an investment firm in the equity-investment business, its capital gains are always taxable.

In addition, enter any amounts you may have included in sections 8 and 9 of Form 71A that reduce the tax-exempt selling price. The selling price of shares that can be sold exempt of tax is subject to taxation where the accounting-based capital gain (difference between the selling price and undepreciated purchasing price) is due to one of the following reasons:

• Write-downs of the value of shares, previously approved in taxation (§ 42, act on the taxation of business income)
• Provisions or public subsidies, which had been deducted from the purchase price
• If your entity belongs to a group of companies, a deductible loss from the sale of corporate stock in another company belonging to that group, if also the buyer was a group company.

Read more on the selling of shares included in fixed assets (Tax Administration guidance “Taxes on the gains derived from selling securities booked as fixed assets in the balance sheet”, in Finnish/Swedish).

Capital gains from selling real estate (if fixed assets)

This line is for any gains that you have received from the selling of real estate if that real estate had been booked as part of the fixed assets of your company. Complete and enclose Form 71B to provide a breakdown of the gains you received. Enter the sum total here.

It may be that there are no such gains subject to tax remaining, after previous years’ capital losses have been deducted (losses formed in accordance with the act on income tax (TVL)). In this case, leave this field blank.

For more information about how capital losses from previous years should be accounted for, see “guidance on source-of-income rules for dividing income taxes of certain corporate entities” – Eräiden yhteisöjen tulolähdejaon poistaminen.

Other revenue from sideline business

This line is for other taxable business revenues (other than the above) included in P/L.
Examples:

• Gains received from a sale of a business unit
• Received refunds of leasing fees
• Received insurance indemnities, received damages
• Rental income from any real estate property that you have rented out
• Rental income from space used for employee recreation
• Received income from any office services that you have supplied

3 Financial income

Receipts of dividends and profit surplus

Accounting column:

This line is for received dividends, profit surplus and other distribution of profits, as recorded in your company’s accounting books. Include any refunds of profit surplus received from a cooperative society that can book them as a deductible cost (under §18.4, act on the taxation of business income).

The following are classified as distributions of profit under §6d.7 of the act on the taxation of business income:

• Profit shares and interest from a savings bank
• Interest on the guarantee capital of a mutual insurance company or an insurance association

Complete Form 73 to break down the dividends and surplus you received. However, if all your dividends are fully exempt from tax and sourced in Finland, you do not have to complete Form 73.

For more information on the tax treatment of dividend income, see instructions for Form 73 (in Finnish and Swedish).

In-depth guide on dividends: “Tax treatment of income in the form of dividends” — Osinkotulojen verotus, (in Finnish and Swedish, record number VH/8449/00.01.00/2020)

Tax accounting:

This line is for the taxable part. It must be the same amount that you had entered on Form 73.

If you are an unlisted company receiving dividends of a listed company of which you own less than 10%, the entire amount is taxable income for you. It is also fully taxable for you if the distributing company can treat the dividend payments as a deductible cost.  Similarly, refunds of profit surplus, received from a cooperative society (§ 18.4, act on the taxation of business income) are taxable income if the cooperative can treat such refund as a deductible cost.

This line is also for any REIT-company dividends, because if the dividends are distributed by a REIT, the entire amount is taxable income for you.

In addition, you must enter the taxable part of any dividends that you have received from a Controlled Foreign Company. The same amount must be on Form 74.

Shares of profits for consortia

Accounting column:

Enter the amounts received, as they are recorded in your company’s books.

Shares of profits, received from a partnership/consortium are tax-exempt income for the recipient.

However, part of income shares (§ 16 and § 16 a, act on income tax (Tuloverolaki 1535/1992)), is taxable income in the hands of the shareholders of the partnership/consortium.

Tax accounting: Taxable portion of profit shares

Enter the taxable income shares of domestic consortia, which are taxable under §16, and enter also the foreign and European profit shares (European Economic Interest Grouping (EEIG)) referred to in §16a, act on income tax.

If you do not yet know the amounts of the profit shares that are subject to tax, leave this space blank. After you have received further information about the amounts, submit that information as an addition to your tax return without delay. Punitive tax increases may be imposed to companies that have neglected to report the sizes of their 2022 profit shares.

Any similar income from a reverse hybrid entity received in 2022 must be included in the total here as well. The total of profit shares must also be indicated on the encloseable Form 82. For more information, see the Tax Administration’s guidance “On the tax treatment of hybrid arrangements” – Eräiden rajat ylittävien hybridijärjestelyjen verotus. (The guidance is in Finnish and Swedish; link to Finnish.)

Income from capital redemption policies, etc.

Accounting column:

Enter your income derived from insurance policies with a capital-redemption clause, form life insurance policies containing a saved deposit, and from pension insurance contracts (§ 35.1 and § 35 b of the act on income tax).

Tax accounting:

Enter the part of the above income that is subject to taxation. Tax must be paid on received amounts from a capital redemption policy, or from a life insurance policy, that are part of the company’s business source of income, and for which there is no interest income at a fixed rate (for more information, see § 35.1 of the act on income tax). Such a received amount of income may be an insurance indemnity or an amount paid to you in connection with a repurchase. Your taxable income would consist of the proportional part of the received amount that equals the yield from the savings deposit at the date of receipt. If this kind of income is received, it is treated as income for the ongoing tax year when received.

In addition, if you receive income in the form of revenue from a life insurance policy containing savings, or from a capital redemption policy, or from a pension insurance contract as referred to in § 35 b of the act on income tax, that income is treated as taxable and its amount must be calculated as laid down in § 35 b of the act.

If you have a capital redemption policy with an agreed interest rate, you receive an annual revenue consisting of the interest plus an additional credit if applicable. This interest and credit are treated as income for the year of accrual.

For more information, see the in-depth guide on “Taxation of income from capital redemption policies” – Kapitalisaatiosopimuksen verotus (VH/2572/00.01.00/2019) (in Finnish and Swedish).

Other financial income, other interest income

This line is for interest income, any other financial income treated as interest income (§18a.2, act on business tax) and currency-exchange gains and other miscellaneous revenue items.

4 Revaluation gains

Accounting column:

• Revaluation gains from financial assets as they are in your accounting (§5 a, subsection 1 of the act on the taxation of business income).
• Revaluation gains from current assets (§5a, subsection 3).
• Revaluation gains from fixed assets (§5a, subsection 5).

Tax accounting:

In most cases, revaluation gains are taxable income. This line is for reporting it. However, revaluation gains are tax-exempt income when the depreciation expense of fixed assets, suggested on the basis of the matching principle (for example, within the meaning of § 42 of the act on the taxation of business income) had not been approved as a tax-deductible expense.

5 Group subsidy received

Enter any received payment of intra-group subsidy or contribution. Complete Form 65 to specify.

6 Income from decreases of reserves

Accounting column:

The reversal (=decrease) of mandatory and taxation-based reserves as they are in your books.

Tax accounting:

Taxable portion of the decreases. Taxable decreases (=reversals) of reserves include:

• An unused replacement reserve (§ 43)
• A warranty reserve of a company operating a construction, shipbuilding or metal industry business for the part that exceeds the expenses arising from warranty repairs (§47)

Complete Form 62 to provide a breakdown of the reserves that are in your accounting books.

7 Shares of profits in a Controlled Foreign Company

This line is for reporting the share in a Controlled Foreign Company's profits that your corporate entity has received. If losses had been made, deduct your corporate entity's share of the CFC's losses from five previous years, if any, from this amount.

Complete Form 74 to give the details of each CFC and calculate your shares of the profits or losses, for each CFC.

A CFC is defined as a corporate entity, placed under the ownership and control of Finnish tax residents in its foreign country of residence, and liable there to less than 3/5 of the corresponding Finnish level of income taxation. A permanent establishment of a foreign company located in a low-tax country may also be regarded as a CFC. However, a company that has its tax residence in the European Economic Area or in a tax-treaty country is not considered a CFC if Finland has agreed on the necessary information exchange with the country. In this case, a further requirement for not being considered a CFC is that such a company must actually be located in its country of tax residence.

A shareholder is taxed on the profits of the CFC if its ownership either alone, or together with others with the same shared interests, is at least 25% of the CFC, or if the shareholder is entitled to a share of at least 25% of the CFC’s returns that are derived from its assets. If the CFC is a subsidiary or an affiliate, as defined in the Accounting Act, enclose its financial statements for this accounting year and the previous accounting year.

8 Capital gains from other assets

This line is for the capital gains derived from any sales (transfers, conveyances) of assets falling into the “other” category of assets. Complete Form 71B to break down the capital gains you have received, and enter the sum total here.

9 Other taxable revenues (not included in P/L)

This line is for any other taxable income not recorded in the profit-and-loss account.
Such revenues may include the differences that are caused by differing regulations on periodization of accounting and of taxation. The property development business is an example of a sector where these differences may occur. Read more: “Property development business” – Perustajaurakointiliiketoiminta verotuksessa (in Finnish and Swedish).

Note: any profit your corporate entity may have made by selling some of its own stock is not treated as taxable income. Do not enter it in this field.

10 Taxable business income, total

Enter the total of lines 1 to 9 in the “Tax accounting” column. This represents the total of taxable income that your company has received from its business activities.

11 Refunds of taxes

Enter any tax refunds that you have recorded as revenue in P/L.
Include any interest that you may have received on the refunds. Such interest is treated as tax-exempt income.

12 Other tax-exempt revenues of the P/L

This line is for reporting the total of other tax-exempt revenues that are recorded in the profit and loss account.

Examples of such revenues include merger profit (§ 52 b of the act on the taxation of business income) and the public financial support for cinematic arts (§ 6.1.5).

Connection fees charged by a corporate entity that maintains an electric power network, a telecommunications, water supply, or district-heating network, are tax-exempt revenues when refunded to you. However, if the above connection fees can be transferred to another party, but you receive a refund of them, it is taxable income. In this case, do not enter the amounts here (§ 6.1.3).

This line is additionally for any capital gains from the sale of moveable assets subject to wear and tear, covered by indirect income recognition (§ 30).

5 Business costs

1 Raw materials and services

Purchases, variation in stocks and inventory

Enter the following amounts:

• Purchase costs of the goods sold during the accounting year
• Purchases during the accounting period
• The change in the inventory of finished goods and work-in-progress (either an increased or diminished inventory balance)

Services – from parent/principal and associated companies

This line is for the total expense your company has paid for services bought from the parent company and other group companies.

Services ‒ from external providers

Enter the total expense your company has paid for services bought from others, not the parent company and other group companies.

2 Staff expenses

Wages and salaries, work done in Finland

Total of wages and fees as recorded in your payroll accounting books.

Pension expenses, work done in Finland

Total of pension expenses as recorded in your payroll accounting books.

Other payroll expenses, work done in Finland

The total, relating to work done in Finland, of additional payroll expenses as recorded in your payroll accounting.

Staff expenses related to PE in Finland and work done in other countries

The total of wages and additional payroll expenses, as recorded in your payroll accounting books, paid for work done in other countries and attributable to your company’s permanent establishment in Finland.

3 Depreciation and reductions in the value of fixed assets

Depreciation expenses

First, complete Form 62 to itemise the depreciation expenses.

Accounting column:

The planned depreciation expenses and depreciation differences that you have included in the P/L as expenses.

Transfer the total from Form 62 to this line.

Tax accounting: Deductible portion

Transfer the depreciation permitted by the act on the taxation of business income (EVL), including additional amounts and specific tax-relief depreciation expenses from Form 62 to this field.

• Depreciation permitted by the “EVL” act means the tax-deductible depreciation within the meaning of §24, §30-§34 and §36-§41 of the act on the taxation of business income.
• This entry must match the total amount of “EVL” depreciation expenses that you had on Form 62 (items 5 and 6 in the depreciation columns).

Report also any depreciation expenses from previous years that have not been deducted for tax purposes (“reserved depreciation”) and which you are claiming a deduction for this year.

• Itemise the depreciation expenses from previous years that were either not approved by the tax office, or not deducted, on Form 12A.
• You must also complete Form 12A for any year when your company does not use its right of depreciation, i.e. creates a new expense that has not been deducted for tax purposes (“reserved, unused depreciation”).

Although it may be permitted under international accounting standards, no depreciation expenses are acceptable against any assets that you use under a leasing contract. Do not enter such expenses in the Tax Accounting column.

Read more: instructions for Form 62.

Reduction in the value of fixed assets

Accounting column:

This line is for decreases in the value of fixed assets (write-down), as recorded in accounting, not reported in the form of depreciation.

Tax accounting: Deductible portion

The part of the reductions in the value of permanent fixed assets that is deductible under § 42, act on the taxation of business income.

This may only include:

• Write-down against the value of securities other than corporate stock
• Reduction in the value of permanent fixed assets other than land, when the fair value of the asset/property at the end of the tax year is significantly lower than its undepreciated residual acquisition value.

4 Other business costs

Entertainment expenses

Accounting column:

All entertainment expenses recorded in your accounting. For more information, see “Entertainment expenses in income taxation” – Edustusmenot tuloverotuksessa (in Finnish and Swedish).

Tax accounting: Deductible portion

Half = 50% of the expenses (§ 8.1.8, act on the taxation of business income).

Donations granted

Accounting column:

All the donations that your corporate entity has paid out, as recorded in your accounting.

Tax accounting: Deductible portion

This line is for the deductible part.

Only reasonable donations to a non-profit corporation are deductible, and generally they should be granted for a local purpose or a purpose close to your entity's line of business.

Under certain conditions, corporate entities may also deduct some donations that are granted for the purpose of conserving cultural history or promoting science or arts, and that amount to at least €850 (§ 57, act on the taxation of business income).

Capital losses for selling securities / fixed assets

Accounting column:

Capital losses from selling corporate stock and shares in partnerships and consortia, if such stock, etc. have been included in your books (and balance sheet) under fixed assets.

Complete Forms 71A and 71B to itemise these losses as follows:

• Form 71A is for the items that have no effect on taxation, i.e. for the tax-exempt capital gains and non-deductible capital losses.
• Form 71B is for any capital gains, and gains from liquidations, that are subject to tax, and for tax-deductible capital losses and liquidation losses. The deductible capital losses can be either unlimited or they may only be deducted from capital gains during the tax year and the 5 years following.
• Capital gains and losses relating to partnership interests must also be itemised on Form 71B.

Tax accounting: Deductible portion

The capital losses for selling shares and partnership interests included in fixed assets with unlimited deductibility. This line is for

• Capital losses resulting from the fixed assets of an entity that operates an equity-investment business.
• Losses resulting from the selling of shares in a housing company or real estate company and equivalent, if the sold shares had been part of the assets that serve your company’ business. Do not provide a detailed breakdown on Form 71B relating to the above losses. However, enter the sum of the loss on Form 71B under “Capital and liquidation losses deductible in business during the tax year”.

Note: a capital loss is usually non-deductible (and the corresponding capital gains tax-exempt), so do not enter it here.

In some circumstances, you can deduct a capital loss only from the taxable capital gains, received during the tax year, for selling shares that had been booked among your company’s fixed assets, or from similar taxable capital gains you will receive during the 5 years following the tax year.

• Such capital loss deductible from capital gains is deducted already when calculating the taxable portion of capital gains, reported in 2 – Other income from business activities under 4 – Business income. For this reason, the capital loss must not be entered here even in those cases.

For more information, see “The tax treatment of corporate entity’s profits for the sale of its fixed assets” – Yhteisön käyttöomaisuusosakkeiden luovutusten verokohtelu.

Write-offs within Accounts Receivable

Enter the amount by which the value of your Accounts Receivable has been diminished (§ 17.2, act on the taxation of business income).

PE-related management costs of the parent/principal

Enter the part of administrative and management expenses paid by your company’s parent/principal that are caused by the upkeep of its permanent establishment in Finland. Examples include:

• Expenses for staff on-the-job training, recreation expenses
• IT expenses and other telecommunications expenses
• Marketing expenses

Other deductible business costs

Enter any deductible business costs, directly relating to the permanent establishment in Finland, and not yet entered in any of the above lines of the “Tax accounting” column as other, deductible operating costs. Examples include:

• Additional personnel costs paid on a voluntary basis
• Office expenses
• Motor vehicle expenses
• IT-related hardware and software expenses
• Other machinery & equipment
• Travel expenses
• Selling expenses
• Marketing expenses
• Research & Development
• Administrative expenses
• Other overhead
• Other business expenses

Also enter the tax-deductible public broadcasting tax and real estate tax your company has paid.

Non-deductible expenses

These lines are for information on non-tax-deductible expenses recorded in your company’s books as part of the profit-and-loss account.

Enter the amounts in this list without including them in the Calculation of taxable income.

Direct taxes

This line is for the income taxes that you have recorded as expenses in the profit and loss account. This means that you should enter the taxes that relate to the accounting period on an accrual basis, not only the payments of taxes in advance that were made during the period.

Do not enter real estate tax because that particular type of tax is treated as a tax-deductible expense.

Punitive tax increases and late-filing penalties

All tax increases are non-deductible regardless of what tax is their base.

Also enter any late-filing fee, any discounted late payment interest with relief, late payment interest, or penalty fee for non-filing. These items are not tax-deductible.

Fines and other penalties

Enter any payments of fines, sanctioned penalties, etc. (§16.5, act on the taxation of business income).

Reduction in the value of shares that are included in fixed assets

This line is for the reduction in the value of corporate stocks that have been booked among your fixed assets.

If a depreciation entry is made due to such reduction, it is not deductible.

Statutory reserves

Statutory reserves made in accounting. In most cases, statutory reserves are not tax-deductible.

What is meant by “statutory reserves” is the amount of estimated future expenses and losses arising from the obligations referred to in Chapter 5, §14, Accounting Act for which no exact amount or precise date of payment is known yet.

Such future expenditure and losses may be incurred by a renovation, or teardown, of a production line or facility used in the business, by warranty repair liabilities for sold products, by claims on defective products and by compensation for damages.

A warranty repair provision is tax-deductible, but only in the case of a company in the construction, shipbuilding or metal industry that is liable for the defects in a bridge, airplane, building, or in comparable large units (§ 47, act on the taxation of business income (EVL)). If you have a reserve treated as deductible because it is a warranty-repair provision, enter it in the “Tax accounting” column under 7 – Increases of reserves.

Other non-deductible costs

Enter any other non-deductible expenses that cannot be entered elsewhere.

Such expenses include:

• Expenses incurred as a result of generating or maintaining tax-exempt income. However, if the amount of the expense is higher than the tax-exempt income, the excess is deductible (§16.2, act on the taxation of business income).
• Fees paid for creating a connection to an electricity, telecommunications, water supply, sewer or district heating network, and refunded to your corporate entity if it waives the benefit produced by the connection fee (§ 16.3).
• Bribes and benefits of a bribe-like nature given
• The amount paid by your company to buy back its own shares is a non-deductible expense unless the shares had been given to the seller due to an employment contract (§16.9 and §18.3).

5 Financial expenses

Interest paid to parent/principal

Accounting column:

Enter the amount that the PE or branch has entered in the books as payments of interest to the parent company or principal.

Tax accounting:

Enter the deductible part of the paid interest.

Interest paid to group undertakings/companies (§ 18 a, act on the taxation of business income)

This line is for any interest you have paid to domestic and foreign group companies because your company has borrowed money from them.

• Example: interest payments, made by your company to companies of the same group (under Chapter 1, §6, Accounting Act).

The money borrowed from group companies (intra-group loans) may be treated either as a direct or indirect loan (under §18a.6, and §18a.7, respectively, of the act on the taxation of business income). When a contract between two group companies is in force, specifying a lender and a borrower, it is a direct loan. The parties to a loan transaction are considered “group undertakings or group companies” if one party exercises control over the other; or if a third party, either alone or jointly with closely associated parties, exercises control within both parties to the loan; within the meaning of § 31.2 of the act on assessment procedure (Laki verotusmenettelystä 1558/1995).

If your company has borrowed money from an unassociated party, not one among your group companies, such borrowing will still be treated as intra-group debt between group companies when either of the following conditions is fulfilled:

• The group company or group undertaking has a receivable from the external party that has lent out money, and this receivable is connected to the loan;
• The collateral for the loan is a receivable that would be paid to a group company or group undertaking.

Not all interest expenses from indirect debt, under § 18 a of the act on the taxation of business income, are necessarily entered in the books as interest expense by companies belonging to the same group (Chapter 1, §6, Accounting Act). For this reason, the interest expenses to be entered here may deviate from corresponding interest expenses in the books (paid interest to companies belonging to the same group).

If your company’s net interest expenses exceed €500,000, you must complete and enclose Form 81 – List of net interest expenses.  If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

Interest paid to associated/affiliated companies

This line is for any interest you have paid, as recorded in your accounting, to companies where there is a participating interest (Chapter 1, §7, Accounting Act).

If your company’s net interest expenses exceed €500,000, you must complete and enclose Form 81 – List of net interest expenses. If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

Other interest expenses

Other interest expenses, e.g. relating to

• Accounts Payable
• Bonds
• Convertible bonds
• Bank loans
• Finance-company loans
• Pension-company loans
• Bills of exchange

If your company’s net interest expenses exceed €500,000, you must complete and enclose Form 81 – List of net interest expenses. If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

Financial expenses treated as interest paid (§ 18 a, act on the taxation of business income)

This line is for the expenses under § 18 a, subsection 2, paragraph 2 of the act on the taxation of business income, that you have paid when taking a loan, which must be treated as interest expenses.

Adjustment of interest paid (§ 18 a, act on the taxation of business income)

Enter the euro value of how much the deductibility restriction set out in §18a, act on the taxation of business income, will restrict the amount you are able to deduct.

Calculate the impact on Form 81 (Account of net interest expenses). Complete Form 81 if your net interest expenses exceed €500,000. You are expected give details relating to all sources of income on Form 81. However, for purposes of the 6U income tax return, only the portion taxable under the act on the taxation of business income (EVL) is relevant. (See item no 8 on Form 81.)

If all the interest expenses of your corporate entity are not deductible, due to the restriction in §18a, you must enter a minus sign and the part you cannot deduct in this line.

Also include any previous years' net interest expense (associated debt) that your company wants to have deducted during the tax year (by claiming it on Form 81).

Group support and write-offs of Acc Receivable

Enter the amount of intra-group support that your corporate entity has granted to a company where your entity alone, or together with other subsidiary companies (cf. § 6b.7, act on the taxation of business income) own at least 10%.

In addition, you must give details on any other expenses you have paid in order to improve the financial status of another company without a reciprocal payment. In addition, fill in any write-offs and depreciation of the receivables (however, do not do so for accounts receivable) from such a company.

These items are not tax-deductible (§ 16.7, act on the taxation of business income).

Losses of other financial assets and final reductions in value

Accounting column:

This line is for any losses of other financial assets, and for any final reductions in value, as they are recorded by your books. These include losses caused by embezzlement, theft or other crime.

Tax accounting: Deductible portion

The deductible portion of the losses of other financial assets and of the final reductions in value.

• Losses of financial assets are deductible (§ 17.1, act on the taxation of business income).
• Final reductions in the value of financial assets are also deductible under § 17.2 of the act; however, they are not deductible when the value of a receivable from another subsidiary company was reduced (see above, "Group support and write-offs of Accounts Receivable").

Capital losses from the selling of financial assets

This line is for any capital losses for the sale of other financial assets, as recorded in your accounting, such as losses incurred from the sale of a security or receivable that had been booked among your company’s financial assets.

Other financial expenses

This line is for other financial costs as recorded in accounting. These include:

• Loan payments
• Bank fees for getting a credit limit for your bank account
• Bank guarantee commissions
• Credit insurance expenses
• Mortgage expenses
• Recovery and collection expenses
• Exchange rate losses
• Factoring expenses
• Expenses for futures contracts

Do not enter any of the financial expenses that you had entered above under “Financial expenses treated as interest paid (§ 18 a, act on the taxation of business income)”.

6 Group subsidy paid out

This line is for any intra-group contribution or subsidy that your entity has paid to other group companies. Complete Form 65 to specify.

7 Increases in reserves

Accounting column:

Increases in the reserves based on tax rules, as recorded in accounting. Fill out Form 62 to specify.

Tax accounting: Deductible portion

This line is for the deductible part.

8 Capital losses from other assets, write-downs of other assets

Enclose Form 71B to itemise any losses (for selling “other” assets) that you have had.

Accounting column:

Enter the amount, as it is recorded in your books, of the losses for sales of other assets and property, and of written-down values of assets.

Tax accounting:

Enter the deductible part of the above amount. Generally, when a sale of other property, and a sale of shares in a real estate company or housing company results in a loss, you can get a tax deduction. Do not provide a detailed breakdown on Form 71B relating to the above losses. However, enter the sum of the loss on Form 71B under “Capital and liquidation losses deductible in business during the tax year”.

However, restrictions are in force that limit the deductibility of losses from stocks and partnership shares included in other assets (not shares in real estate and housing companies). If you have sold shares, corporate stock, shares in general/limited partnerships (part of your “other” assets), and the result was a loss, the only way to deduct such a loss is to offset it against any taxable capital gains for selling similar “other” assets. The tax deduction is available during the tax year and 5 years after the end of the tax year. Do not enter any losses resulting from (non-real-estate, non-housing company) corporate stocks and other shares here. Enclose Form 71B to itemise the losses.

For more information on the deductibility of capital losses, see section 3.4 of the “guidance on source-of-income rules for dividing the income taxes of certain corporate entities” – Eräiden yhteisöjen tulolähdejaon poistaminen (VH/1881/00.01.00/2019) (in Finnish and in Swedish).

9 Write-downs of receivables included in other assets

Accounting column:

Enter the amount, as it is recorded in your books, of any written-down receivables that are part of your “other” assets.

Tax accounting:

Enter the deductible part of the above. In accordance with the provision of § 17.2 of the act on the taxation of business income, if the taxpayer has had a receivable (in the “other” asset category) but the receivable has been lost, the taxpayer is entitled to a tax deduction. The tax-deductibility of decreased value of receivables is discussed in more detail in “the Tax Administration’s guidance on the deductibility of decreases in the value of receivables in the taxation of business income” – Saamisten arvonalemisten vähennyskelpoisuus elinkeinotulon verotuksessa (in Finnish and Swedish).

10 Additional deduction for research and development

Starting 2021, the deduction related to expenses for research and development is extended. All entities that operate business or agriculture and work together with a research organisation can qualify for the extended, additional deduction.

The base for the expenses must be a research and development operation conducted in cooperation with an organisation for research or for the dissemination of information. There must be invoices for sub-contracting that your company has paid for, and the invoices must come from (and be paid to) an organisation for research, or from an organisation for the dissemination of information.

For the 2022 tax year, the additional deduction is 150% of those invoices. However, the minimum deduction that can be granted is €5,000. This means that the total of expenses must be at least €3,333. The maximum deduction is €500,000.

No additional deduction is granted if direct financial support from the State of Finland or other public subsidies were given to the company for covering the subcontracting expenses.

Complete and submit Form 67 to give details on your company’s grounds for claiming the additional deduction. Enclose additional, free-text materials as necessary.

Read more: Additional deduction for research and development in tax years 2021–2027.

11 Other deductible expenses (not in the accounting period’s profit and loss account)

Any deductible expenses, for tax purposes, that are not included in the accounting period’s P/L account.

This field is for any dividends that are related to a work effort of the beneficiary, etc. Dividends from non-listed companies are subject to earned-income tax if the distribution basis is the work effort of the shareholder who gets the dividends, or the work effort of a person in the sphere of interest (§ 33 b.3, act on income tax). More detailed information on these distributions can be found in “Dividends and profit surplus based on work effort” — Työpanokseen perustuvan osingon ja ylijäämän verotus (in-depth guide in Finnish and Swedish, record no VH/8108/00.01.00/2020).

In addition, you must enter any training deduction claimed by your corporate entity. In this case, submit an explanation of the training deduction on Form 79.

12 Total tax-deductible business expenses

Enter the total of “Tax accounting” in this line: the tax-deductible expenses of your business operation.

6 Taxable profits/Tax-deductible losses

This section is for reporting profits or allowable losses, by source of income, for the 2022 tax year.

Do not enter any losses from previous years here. The Tax Administration subtracts them automatically unless you have had changes relating to “11 Changes of the shareholding, information on past losses". You can check your company’s tax decision for a list of previous years’ losses.

If your company has had income from an agricultural source, complete Form 7M to break down the revenue and expenditure from agriculture.

Business profit

If the result is positive, enter it in this line.

Subtract Tax-deductible business costs (section 5 of the form, line 12) from Taxable business income (section 4, line 10).

Business loss

Enter the allowable loss in this line. This is normally the negative difference that results from subtracting Tax-deductible business costs (section 5, line 12) from Taxable business income (section 4, line 10).

However, if your expenses contain group subsidy payments that you have made (or other expenses treated as “Amounts not taken into consideration”), you must reduce the loss in this field by their amount.

Amounts not taken into consideration when calculating the allowable loss

Payments of intra-group subsidy, and reserves on the balance sheet for residential property, are not taken into consideration as expenses in the calculation of the year’s allowable losses.

Taxes at source withheld in Finland on income

Enter the amount of taxes at source withheld in Finland on the corporate entity’s income.

If your corporate entity is not on the prepayment register, it is possible that after you have presented an invoice to a company or an individual, they withhold tax-at-source when paying the invoice to you.

If tax has been withheld although the foreign company receiving payment is not treated as having a permanent establishment in Finland, such a foreign company is entitled to request a refund.

For more information, see Refunds of tax at source

This line is not for taxes withheld at source from wages paid to your company’s employees. This means that this line is only for amounts withheld at source on payments of trade income to corporate entities, not on payments to employees.

In the same way, this line is not for any prepayments paid in by you.

7 Key figures for the parent/principal company

Parent’s/principal’s/main operation’s net sales (all activities)

Enter the worldwide sales/turnover as recorded in the parent’s accounting.

Total expenses

Enter the worldwide expenses as recorded in the parent’s accounting.

Profit or loss

Enter the worldwide profit or loss as recorded in the parent’s accounting.

Number of staff

Enter the number of employees of the entity that is your main operation, your parent or your principal.

Calculation of net worth

All companies must complete the Calculation of Net Worth because the information is needed for statistical and other purposes. However, if your corporate entity is a listed company, you can report the assets and liabilities at their balance-sheet values, because the net worth and the mathematical value that result from the calculation will have no impact on how your dividends are taxed. The comparison values of listed-company stock depend on stock-market quotes, not on the book values on the balance sheet.

For purposes of this guidance, 'listed' means a company with all its stock, or a series of shares, being subject to stock-exchange trading in Finland (the basic listing or the 'Pre List' of NASDAQ OMX Helsinki Oy), elsewhere in the European Economic Area, or in a comparable market outside the European Economic Area.

If you are a credit institution, an insurance company or a provider of investment services (regardless of whether you are listed or non-listed), you do not have to fill in all the spaces of the Calculation of Net Worth. You only have to fill in the totals of assets and liabilities.
If you are a corporate entity that does not operate a trade or business (within the meaning of § 1.1 of the act on the taxation of business income), fill in “Other assets total” under 8 – Assets to specify your assets, and fill in 9 – Liabilities to specify your liabilities. If your entity is a nonprofit organisation, it is possible that it has also made some non-current investments (assets taxable under the act on income taxation).

8 Assets

Enter all assets as amounts equalling their undepreciated, residual acquisition cost unless the guide instructs you to do otherwise. The values that must be entered in the calculation of net worth may differ from those on your company’s balance sheet.

Fixed assets

The business assets intended for permanent use are fixed assets (§ 12, act on the taxation of business income (EVL)).

They are normally included in the non-current assets category.

Fixed assets subject to wear and tear include

• buildings,
• machinery,
• various fittings, fixtures and equipment, etc. and
• any patents and other intangible rights that are transferable.

Complete Form 62 to specify the depreciation, and the differences in booked/planned, relating to your fixed assets subject to wear.

Land, securities and similar fixed assets are regarded as not being subject to wear and tear.

Intangible assets

Enter the total value of your company’s intangible assets.

Intangible assets include

• Patents
• Copyrights
• Trademarks
• Licenses in force
• Concession and permit rights
• Licence fees for computer software

Other non-current investments

Enter the non-current investments that have retained their value and can be treated as assets. See the corresponding line 7, under F Capitalized Expenditure (§24 to §25, act the taxation of business income), on Form 62, “Undepreciated acquisition cost at the end of the tax year”).

The expenses you have paid can be capitalized, i.e. treated as assets, if they accumulate or retain income for three or more years. For example, the expenses you have capitalized as required by the act on the taxation of business income are deemed long-term assets i.e. they cannot be deducted as an annual expense. Under the provisions of § 24 of the act, these expenses include the improvement costs of a leasehold, and the goodwill value you have paid for when you have bought a business unit. In addition, as it has been established by case-law, some research & development expenses can be capitalized.

Calculated tax receivables, expenses arising from the company's founding and organisation measures or long term expenses with no net asset value are not deemed to be assets.

If a difference resulting from a merger is positive in your company’s accounting books, this value must be included in the receiving company's net worth (under the court rulings KHO 1994-B-545 and KHO 1994-B-546).

Real estate, buildings and structures (Form 18)

Enter the total value of real estate, buildings and structures included in the company's fixed assets.

Complete Form 18 to specify.

The value should either be the undepreciated residual acquisition cost (= total undepreciated end-of-year balance of building acquisition cost and land acquisition cost, reported on line 7 on Form 62) or a comparison value (= taxation value), whichever is higher.

You must compare the above values for each real estate unit separately.

A real estate unit comprises a land area and the buildings located on it.

According to § 6 of the act on income tax, real estate also refers to a building, structure or other facility located on another owner's land, which can be handed over to a third party without consulting the landowner so that the right of possession for the land also is transferred.

If the corporation's accounting period ends between 1 January and 30 September 2022, the taxation value for 2021 is used exceptionally as the comparison value, because the taxation value for 2022 has not yet been confirmed at that point.

If the corporation's accounting period ends between 1 October and 31 December 2022, the taxation value for 2022 must be used.

Other structures treated as being fixed assets are

• Fuel tanks, acid tanks and other structures designed for storage, built of metal or similar materials
• Lighter structures built of wood or comparable building materials
• Structures utilised exclusively for research and development of the business

The comparison value of forest land is its average annual yield × 10.

The comparison value of agricultural land is its average annual yield × 7. The Tax Administration issues an official decision every year confirming the relevant annual yields.

The comparison value of water and fallow lands is 0.

Machinery and equipment

Enter the total undepreciated (for tax purposes) acquisition cost.

Examples include:

• Machinery and equipment
• Trucks and vans
• Passenger cars
• Commercial vehicles
• Furniture
• Any machinery and equipment you offer for rent

If you have some machinery and equipment that you hold under a leasing contract, it is not regarded as being part of the fixed assets of your company. Do not enter its value here.

Cash advances paid

The cash advances that you have pre-paid, if it is part of your fixed assets.

Securities included in fixed assets (Form 8A)

Compare the undepreciated acquisition cost and the comparison values of securities (corporate stock, etc.) included in fixed assets, in financial assets and in other assets. If your entity is a nonprofit organisation, it is possible that it has also made some non-current investments (assets taxable under the act on income taxation).

Transfer the securities included in fixed assets here. Take the value from the column where the total value is higher.

The value of shares is 70% of the closing stock-market quote on the end date of your accounting period. See quotes (www.nasdaqomxnordic.com).

This website contains the archived quote information for the end date of your accounting period.

The comparison values of shares in mutual funds and UCITS is 70% of the fair market value at the end of the year.
To find out the comparison value of an unlisted share, look it up in the tax decision that concerns the company that has issued the shares.

The taxation value for 2005 is used as the comparison value for housing-company shares acquired before 1 January 2006.

Apartment shares acquired on 1 January 2006 or later do not have a separate comparison value; nor do unlisted bonds, stock options or shares in a co-operative. For these securities, you must enter the undepreciated acquisition cost (for income-tax purposes) in the Comparison value column on Form 8A.

Receivables from companies within the same group

This line is for any receivables, from companies within the same group, included in the fixed assets.

“Group companies” refer to the parent company and subsidiaries, as defined in the Accounting Act (Chapter 1, §6).

Receivables from associated/affiliated companies

This line is for any receivables, included in fixed assets, that you have from companies that are associated or affiliated with you (within the meaning of Chapter 1, §7, Accounting Act).

Other non-current receivables

This line is for any other receivables that your company has booked as part of its fixed assets.

Other fixed assets

Other assets, booked among your company’s fixed assets.

The “other fixed assets” category may include living species such as animals and plants, and works of art, and collectibles.

Fixed and non-current assets, total

Enter the total value of all the above fixed assets.

Current assets

Under § 10 of the act on the taxation of business income, current assets are merchandise, raw materials, semi-finished goods and other goods intended for handing over to a customer in the course of business, with or without further processing. Additionally, fuel and lubricants, and other comparable supplies, intended for consumption in the course of business are regarded as current assets.

Enter the acquisition cost as the value of your current assets, net of any deduction (write-down) reflecting a decrease in value (§ 28, subsection 1, act on the taxation of business income).

Real estate and buildings among current assets

This line is for any real estate and buildings that have been booked as part of your company’s current assets.

Other current assets

Other goods or items booked as part of your company’s current assets. Examples:

• Materials and supplies
•  Work-in-progress
• Finished products
• Goods, merchandise
• Securities booked as current assets
• Advances paid for the current assets that your company is going to purchase

Total current assets

Enter the total of the current assets above.

Financial assets

Financial assets include cash, receivables in the form of bank account balances, and cash equivalents, any notes receivable, and other comparable items (§ 9).

Additionally, the end-of-year balance of your company's Accounts Receivable account and your company’s cash reserves in the form of securities are also regarded as financial assets.

Enter the nominal values for the receivables booked as part of your company’s financial assets. For other financial assets, enter the acquisition cost. First, subtract any reductions from both these values, writing them down as provided in § 17 of the act on the taxation of business income.

If the receivables are not denominated in euros, you must convert them into euros following the same rules as how you convert foreign currency amounts for accounting purposes, i.e. by the exchange rate valid on the balance-sheet date (Chapter 5, § 3, Accounting Act).

Accounts receivable

This line is for all your company’s receivables from customers, both long-term and short-term, receivables relating to any instalment contracts you have made with your customers, and other similar assets.

Receivables from companies within the same group

Receivables from companies within the same group; not, however, accounts receivable.

Companies within the same group are the parent company and subsidiary referred to in Chapter 1, § 6 of the Accounting Act.

Receivables from associated/affiliated companies

Enter the receivables from associated/affiliated companies (Chapter 1, §7, Accounting Act), excluding any accounts receivable.

Loans receivable

This line is for entering the balances of loans other than the loans discussed above. For example, your company may have issued loans to the staff and management, both long-term and short-term.

Securities included in financial assets (Form 8A)

This line is for any corporate stock and other securities that are part of your financial assets.

Itemise the securities in your company’s books as fixed assets, as financial assets, and as other assets on Form 8A. Then transfer the sum total (Financial assets, total) to this line of Form 6U from the column on Form 8A where the value is higher.

If your entity is a nonprofit organisation, it is possible that it has also made some non-current investments (assets taxable under the act on income taxation).

Other financial assets and other receivables

Other financial assets than the above. Examples of these assets:

• Received prepayments and accrued income
• Cash in banks
• Cash in hand
• Other receivables (e.g. insurance indemnities, damages)

Financial assets, total

The total value of all financial assets above.

Other assets

Assets that are outside your business, and taxed under the act on income tax (TVL, must not be included in the above lines for fixed assets, current assets or investment assets. Instead, enter them in the lines below.

Enter all assets as amounts equalling their undepreciated, residual acquisition cost unless this guidance has instructed you to do otherwise.

Securities (Form 8A)

Securities outside of your business.

Complete Form 8A to specify the securities you have booked as current assets, as financial assets, and as “other” assets. Then transfer the “Other assets in total” to this line of Form 6U from the column on Form 8A where the value is higher (bottom of Form 8A).

If your entity is a nonprofit organisation, it is possible that it has also made some non-current investments (assets taxable under the act on income taxation).

Real estate

Enter any real estate that does not serve the business purposes of your company. For example, enter any real estate you have rented out to a third-party tenant.

The value should either be the undepreciated residual acquisition cost (used for income-tax purposes) or a comparison value (= tax value), whichever is higher.

If your accounting period ends between 1 January 2022 and 30 September 2022, use the real property's 2021 tax value in the comparison.

Receivables from companies within the same group

This line is for any amounts that you have booked as intra-group receivable.

Other receivables

This line is for receivable balances other than the above.

Other assets in this category

Other assets not directly serving a business purpose.

Other assets, total

Enter the total value of all the “other” assets that are itemised above.

Total assets

Enter the total of fixed assets, current assets, financial assets and “other” assets.

9 Liabilities

Loans from financial institutions

Enter the following amounts:

• Short-term and long-term loans from financial institutions
• Loans from financing companies and your repayments of these loans
• Factoring-account balances
• Other short-term loans from financial institutions

Amounts owed to companies within the same group

Your company’s short-term and long-term debt balances to companies within the same group but not, however, accounts payable.

Examples of what to enter in this line:

• Advances you have received from group companies
• The amounts you owe to group companies in the form of bills of exchange
• Other intra-group debt balances
• Accruals and deferred income, where the counterpart is a group company

Companies within the same group, i.e. “group undertakings”, are the parent company and subsidiaries referred to in Chapter 1, § 6 of the Accounting Act.

However, if the group of companies has a policy of dividend distribution in advance, and an indebtedness in the form of dividends has formed, you must not include that among the “amounts owed to companies within the same group”. Do not enter it in this field. If the distribution of advance dividends took place during the 2020 tax year, you must subtract its value from your company’s net worth; this is done in the same way as in the case of distributable dividends according to a company decision to distribute them. Indicate the amount subject to advance distribution but relating to the 2021 dividends in the “Total dividends or surplus agreed to be distributed” field.

For more information on paying out dividends in advance, see “Tax treatment of income in the form of dividends” — Osinkotulojen verotus, (in Finnish and Swedish, record number VH/8449/00.01.00/2020).

Amounts owed to associated/affiliated companies

Enter the short-term and long-term debts your company owes to companies where it has a participating interest (under Chapter 1, Section 7, Accounting Act). However, do not enter any accounts-payable balances in this line.

This means that this line is for any received advances from associated or affiliated companies, and any bills of exchange, other debt, and accruals owed to them.

Amounts owed to shareholders

Short-term and long-term liabilities to shareholders and their family members.

Accrued expenses and deferred income

Items to be included:

• Rental income that you have received in advance
• Interest income
• Accrued investment grants relating to future periods
• Other income received in advance
• Any wage expenses booked so as to relate to your current accounting year, on an accrual basis
• The expense consisting of vacation pay to company employees

Other liabilities

Other liabilities may include

• Long-term loans from pension companies
• Advances received
• Financial bills of exchange and liabilities to workers
• Short-term financial bills of exchange
• Tax withholding, which you have not yet paid on to the tax office
• Social security (healthcare) contributions, which you have not yet paid on
• Accounts payable
• Convertible bonds you have issued
• Debentures you have issued

If you are an insurance company or a pension insurance company, you must enter outbound payments you are responsible for as debt; and a balance-sheet reserve (for the strengthening of an insurance company’s solvency) must also be entered as debt (within the meaning of the act on the valuation of property and assets, §2.3).

If you are a power company, telecommunications operator, etc., debt also includes the payments received from your customers who join a utility grid that you maintain (electric power, telecommunications, etc.) if the amounts have to be refunded to the customers upon termination of the utility contract (within the meaning of the act on the valuation of property and assets).

For purposes of the Calculation of Net Worth, tax debt estimates within the meaning of Chapter 5, §18, Accounting Act, are not debt, so you must not enter them as debt. However, any tax debt booked for the same accounting period (accrual basis accounting) is always entered as a debt.

Subordinated loans taken

The total of subordinated loans (Chapter 12, § 1, Companies Act) you have taken.

In taxation, a subordinated loan is usually considered to be a liability item (cf. § 2.3 of the act on the valuation of property and assets), so it is entered as a liability in the calculation of net worth regardless of its booking method.

Total liabilities

This is the total of all the entries that represent debt.

Please note that the amount here is not necessarily the sum of Current liabilities total and Non-current liabilities total. The amount here is calculated according to the tax regulations on asset and liability valuation. In contrast with this, "Current liabilities total" and "Non-current liabilities total" come from the accounts i.e. they are the book values.

Total current liabilities

Enter the book balance of your short-term debt.

Total non-current liabilities

Enter the book balance of your long-term debt.

10 Auditor’s report

Have the auditors given their report?

Statutory audit must be conducted in Finland over a Finnish-registered branch entity belonging to a foreign company, if the foreign company's annual accounts are not being compiled, audited and made public in a manner corresponding to the current EU rules on the adoption of financial statements or in another generally accepted manner (§ 1:1, Auditing Act).

• Tick “Yes” if the auditor has finished their audit work and given their report before you submit the tax return.
• Tick the "No, will give later" box if the auditor has not yet given their report but will do so at a later date.

If the audit is not completed by the deadline date of the income tax return, you must deliver the auditor's report to the Tax Administration later, within one month of the date when the auditor gives their report.

If you file electronically, you can sign back in to add more information.

If you opt for paper filing, you must staple Form 63 to the Auditor's report because the stack of papers must have a cover sheet. Send the paper version and the cover sheet to:

Finnish Tax Administration
OCR Service of corporate taxpayers’ returns - Yhteisölomakkeiden optinen lukupalvelu
P.O. Box 200
FI-00052 VERO

Tick the "No because no auditor has been appointed under Chapter 2, § 2, Auditing Act" box if you have a small business that exercises its option not to appoint an auditor (Auditing Act (1141/2015)).

A company can choose not to appoint an auditor if no more than one of the following conditions was fulfilled during both the closed and the immediately preceding accounting periods:

• The balance-sheet total is over €100,000.
• The net sales (=turnover) is over €200,000.
• Average number of people on the payroll is more than 3.

Nevertheless, it is mandatory for the company to appoint an auditor if its articles of association, the corporate rules, etc. contain provisions to that effect.

Further provisions on when an auditor must be appointed are found in Chapter 2, § 2, subsection 4 of the Auditing Act. These provisions contain some restrictions on sectors of business as well as on shareholders’ power and influence.

Are there any disapproving statements or remarks?

Tick "No" if the auditor's report does not contain any disapproving statements, remarks or additional notes referred to in the Auditing Act.

Tick the "Yes" box if the auditor's report does contain them.

11 Changes of shareholding, information on past losses

Complete this section in all situations where more than half of the corporate stock of your company were transferred to another shareholder during a single tax year — or in stages, in a process that has spanned several years. The information on changes in shareholding and ownership has an impact on your company’s rights to receive tax deductions for its losses from previous years. However, if changes in shareholding have taken place due to an inheritance or will, you do not have to give details on them in this section of the tax return form.

Losses of a corporate taxpayer are deductible against its taxable profits, attributable to the same source of income as the losses were, over the 10 tax years following the year when the corporate taxpayer had the loss.

The impact of changes in corporate ownership and shareholding

Your company loses its right to deduct previous years’ losses in circumstances listed below:

• More than 50% of corporate stock has changed hands; either directly or indirectly.
• The changes of ownership took place during a year when a loss was made, or after such a year.
• The reason for the changes was a sale or an exchange deal, etc., of corporate stock; the reason was not an inheritance or last will.

However, you can ask for an exemption from the Tax Administration to deduct the losses regardless of the change in ownership (§ 122, act on income tax).

Read more: “How to file an application for advance ruling/exemption and the decision thereon” – Ennakkoratkaisu- ja poikkeuslupahakemuksen tekeminen ja siihen annettava päätös and Vahvistettu tappio ja omistajanvaihdos

Indirect changes in corporate ownership and shareholding, or changes in the shareholder's type of ownership, are taken into consideration if the shareholder owns at least 20% of the company and a majority of that shareholder’s shares is transferred to another party. In such a case, if the shareholder is an entity for “holding”, all shares of the holding corporation or partnership are considered to have changed ownership to the other party.

Example: X Ltd owns the entire corporate stock of Z Ltd. When more than half of X Ltd’s shares go to a new owner, all shares of Z Ltd are considered to have changed ownership.

However, if your corporate entity is a listed company, any changes in the ownership of its publicly traded shares do not prevent the deduction of losses and unused tax credits.

Deduction of losses if shares have been transferred to new owner

Enter the tax year when the transfer took place, if more than half of the shares have changed hands in one transaction during the past ten tax years. If a tax year has already been reported to the Tax Administration, it need not be reported again.

Similarly, enter the year even if this has occurred progressively: the change in shareholding and ownership may have happened during a period spanning several years, or there may have been indirect changes of ownership during the past ten tax years. In this case, indicate the tax year before which or during which any losses made by the company would not be deductible because the current owner is different. In addition, you must enclose a free-text explanation of the changes and the points in time when the changes took place.

If you file the tax return on paper, remember to authorize the completed form with your signature and the date.