How to fill out Form 6B Tax return on business activities – corporation 2018

Tax year 2018

  • 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 periods ending in the 2018 calendar year, you must complete a set of tax return forms for each closing of an accounting period. The Tax Administration will combine the data from the different accounting periods to an aggregate whole for the tax year.
  • Also see the list of enclosures

Table of contents:

2 List of shareholders, shares held, amounts borrowed etc
3 Residential property owned by company and used by majority shareholder
4 The decision on profit distribution
5 Changes in subscribed share capital after close of accounting period
6 Business income
7 Business costs
8 Taxable profits/tax-deductible losses
9 Assets
10 Liabilities
11 Capital, Equity and Reserves
12 Auditor's report
13 Deduction of losses if shares transferred to new owner

Enclosure forms and instructions on completing them
Legal abbreviations and other abbreviations used in the instructions

Täytä tähän taulukon kuvaus, esteettömyyttä silmälläpitäen, ei näy kuin ruudunlukijoille
Further information will be given by (name, telephone number) The name and telephone number of the person who will provide further information to the Tax Administration, if necessary.
Changes in the line of activities

Tick this box if the company's area of activity has changed.

Report the changed principal activity according to the TOL 2008 classification

See the sector codes on the website of Statistics Finland (tilastokeskus.fi)

Has activity in Finland (mainland) and Åland

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

Also tick the box if the company operates only in Åland but its registered domicile is in mainland Finland, or its registered domicile is in Åland and it operates in mainland Finland.

Enclose free-text information on how the profits/losses are divided between Åland and mainland Finland.

Åland-domiciled corporate entities must pay municipal tax on all its income to the tax authority of Åland, under the provisions governing municipal income tax (cf. Ålands författningssamling 119/2011).

Under the same provisions, also 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 Finnish Income Tax Act, all corporate entities must pay income tax at the 20-percent rate, the proceeds from which are distributed between the State, municipalities and Church. This would mean double municipal taxation for corporate entities operating in Åland. This double taxation is eliminated either by the Provincial Government of Åland or the Tax Administration according to the company's domicile.

Has IFRS financial statements Tick this box if your P/L and balance sheet are compliant with the standards (IAS/IFRS or GAAP) (under the provisions of Chapter 7, Accounting Act).
Has to prepare Transfer Pricing Documentation (§ 14 a, VML) (complete Form 78)

Tick this box, if your company is obligated to prepare documentation on transfer pricing. Also fill in Form 78 (Explanation of transfer pricing).

Transfer pricing documentation is required when transactions have been made between group companies in an associated relationship if the other party to the transaction is a foreign enterprise, or if the transaction was conducted between a foreign enterprise and its permanent establishment located in Finland (§ 14 a, VML).
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 who, alone or together with a sphere of influence, can control both parties to the transaction (§ 31.2, VML).

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

  • have at least 250 employees; or
  • have more than €50 million of net sales and more than €43 million of balance-sheet total; or
  • have at least 250 employees; or
  • have more than €50 million of net sales and more than €43 million of balance-sheet total; or
  • are not small or medium-size enterprises under the definition of the Commission Recommendation 2003/361/EC.
    When considering this section, it is important to note that being part of an international group often leads to an SME operating in Finland being under the obligation to submit documentation on transfer pricing. When the threshold values regarding the number of employees, net sales and balance-sheet total are calculated, in practice the entire group of companies is taken into consideration based on the ownership circumstances.

Read more in the guideline, Documentation of transfer pricing (Doc No. 1471/37/2007).

Has received shares through an exchange during tax year 

Tick this box, if either of the following conditions is fulfilled:

  • During the tax year, the company has received shares of another company in a swap (within the meaning of § 52 f, Business Tax Act). It now holds more than half of the votes of the other company; or
  • The company has already held more than half of the votes and has recently bought more shares, paying for them with an issue of its own shares to the shareholders of the other company.
2 List of shareholders, shares held, amounts borrowed, etc.

This section is for giving details on company shareholders, and on the loans issued and other payments made to them and their family members.

A shareholder can be a natural person or a legal person.

Section 2 only has space for the details of four shareholders. If the details do not fit in this section, report the details of all shareholders on enclosure form 72.

When reporting the details of a legal person who is a shareholder, include only the name, Business ID and the number of shares.

If there are 1 to 10 shareholders, the details of each shareholder must be reported.

If there are more than ten shareholders, report the details only of those shareholders who hold at least 10% of the company's shares.

If every shareholder owns less than 10% of the company, this section does not need to be filled in. In such a case, tick the box "All shareholders own less than 10%".

However, the details of a shareholder (or a family member) who has been issued a shareholder loan must always be reported regardless of their ownership share.

Additionally, an annual information return must be submitted of a shareholder loan if the shareholder, the shareholder's family member or they together own directly or indirectly at least 10% of the company shares or they hold a corresponding share of the company's total votes.

Example: The husband owns 5% and the wife owns 10% of the shares. The company has nine other shareholders, all of who own less than 10%. In 2013, the husband received a loan of €10,000 from the company. In 2018, the wife took out a shareholder loan of €5,000 from the company. In Section 2, you must report the details of both the husband and the wife and the amounts of their loans at the end of the 2018 accounting period. Additionally, an annual information return must be submitted of the shareholder loan issued to the wife in 2018, as the couple owns more than 10% of the company's shares in total.  

a) Shareholder name

Report the name of the shareholder. The shareholder name must be reported even if no loans have been issued or other payments made to the shareholder.

Also report the name of the shareholder's family member if a loan has been issued or a payment made to a family member of a natural person who is a shareholder, such as spouse, child, parent or other family member closer than a cousin.

b) Personal Identification Number or Business ID 

Natural persons

Report the shareholder's Personal Identification Number.

Also report the Personal Identification Number of the shareholder's family member if a loan has been issued or a payment made to a family member of a natural person who is a shareholder.

A Business ID can be reported in place of a Personal Identification Number, if the person has one.
If there are shareholders who are foreign persons with no Finnish Personal Identification Numbers

  • in an online tax return, enter DDMMYY-UUUU (or date of birth-UUUU) as the Personal Identification Number
  • on a paper form, leave the entry blank.

Legal persons and companies

If a shareholder is a legal person, report the shareholder's Business ID.

If there are shareholders that are foreign corporate entities with no Finnish Business ID

  • in an online tax return, enter 0000000-0 as the Business ID
  • on a paper form, leave the entry blank.
Number of shares

Enter the number of shares owned by the shareholder (not the percentage).

Please note that the number of shares must be reported even if no loans have been issued or other payments made to the shareholder.

Payments

Payments for which the employer submits an annual information return are not entered here, with the exception of shareholder loans for which an annual information return must be submitted but are nonetheless reported here.

An annual information return must be submitted for wages, fees, fringe benefits, allowances for travel expenses and voluntary pension insurance contributions, for example. An annual information return is also submitted for dividends, so they are not entered here either.

Rent The total amount of rent payments accredited to a shareholder or their family member for the accounting period on an accrual basis.
Interest The total amount of interest accredited to a shareholder or their family member on an accrual basis.
Assets sold The total amount of transfer prices accredited to a shareholder or their family member (such as the total amount of purchase prices) if the company has purchased properties, apartments, securities or cars from the shareholder or their family members during the accounting period.
Other Other payments made to the shareholder or their family member, such as guarantee commissions.
Shareholder loans

Shareholder loan granted to the shareholder or their family member by the company.

Report the shareholder loan using the amount in the balance sheet for the 2018 accounting period.

All shareholder loans must be reported in this section. Report both shareholder loans for which annual information returns are submitted and which are taxed as capital income, and shareholder loans for which no annual information return is submitted.

An annual information return must be submitted for monetary loans granted to shareholders or paid back by a shareholder during the calendar year, if the borrower (a natural person), their family member or they together hold at least 10% of the company's shares or votes. Family members include the shareholder's spouse and children under 18.

More than 4 shareholders Tick this box if you have reported the shareholders and the payments made to them on the additional information form 72.
All shareholders have less than 10% holding

Tick this box if all shareholders own less than 10% of the company.

If you ticked the box, do report the details of those shareholders and shareholder family members who have loans granted by the company during the tax year or previously.

3 Residential property owned by company and used by majority shareholder  

In Section 3, itemise the residential properties owned by the company that have been used by a majority shareholder or their family for accommodation during the accounting period.

Also include a statement on the use and users of other than permanent residences (such as summer cottages).

There is space for the details of one residential property only. If a majority shareholder or their family has been using more than one company-owned residential property, report the details on a free-form attachment.

If a company-owned residential property is used by more than one a majority shareholder, report the details of the a majority shareholder using the property who owns the most shares in the company.

Shareholder's Personal Identification Number

The majority shareholder's Personal Identification Number.

A majority shareholder refers to a person who is in a managerial position in the company and holds over 30% by him/herself or over 50% together with their family of the company's shares or votes.

Name of property, real estate company or housing company The name of the property, real estate company or housing company.
Live-in period Enter the live-in period during the company's accounting period when the majority shareholder or their family lived on the property.
Value used in calculation of net worth

Enter the same value for the residential property here used in the tax return's asset calculation in Section 9, Assets. If only part of the property was used by the shareholder or their family, enter a value corresponding to this part as the value of the property.

Real estate property must be valuated at its undepreciated acquisition cost or at its tax value, whichever is the higher.

  • If the company owns several real estate properties, perform a comparison on Form 18.

Apartments in housing companies must be valuated at their undepreciated acquisition cost or their latest tax value, 2005 tax year, whichever is higher.

  • Perform a comparison on Form 8A.
  • If the company bought the apartment in 2006 or later, a comparison is not performed; instead, the apartment is valuated at its undepreciated acquisition cost. If a reserve in the balance sheet has been utilised when paying for the apartment, the amount utilised must be added to the value of the apartment.

The value of the residential property is deducted from the total value of the shares held by the majority shareholder for purposes of dividing their receipts of dividends in earned income and capital income.

4 The decision on profit distribution (leave blank if no distribution is made)

Distribution of dividends or profit surplus

Date of decision to pay out dividend or profit surplus

Report the details on the distribution of dividends or surplus in tax return 6B if the decision on the actual distribution of dividends has been made and the financial statement for 2018 confirmed before the filing of the tax return. Also enclose an excerpt from the minutes of the annual general meeting with the tax return.
If a decision on the distribution of dividends, distribution of additional dividends, distribution of surplus or confirmation of the financial statement for 2018 is made after the tax return was filed, the information must be sent to the Tax Administration within one month of the decision.
Complement an electronically submitted tax return online.

On paper, the information is reported in Form 63 and enclosing an excerpt from the minutes of the annual general meeting with Form 63. Send the information to the following address

Verohallinto
Yhteisölomakkeiden optinen lukupalvelu
PL 200
00052 VERO

If dividends are distributed mid-year or distributed for the previous accounting period, you must invariably enclose a separate explanation of the facts and circumstances. If you have filed the tax return on paper and the distribution of dividends does not take place until after the tax return was filed, you must always report the distribution of dividends using Form 63, enclosing an excerpt of the minutes of the annual general meeting.

Read more about reporting dividends based on work effort.
Additional information on the asset distribution and surplus of cooperatives.

Date when dividends or profit surplus can be drawn

Date when a dividend or surplus can be withdrawn. If the dividend or surplus can be withdrawn in more than one instalment, submit an explanation in a separate enclosure. You can then enter the date on which the first instalment could be withdrawn here.

A separate annual information return must be submitted by the end of January 2019 for dividend or surplus withdrawable in 2018. The annual information return for dividend can be submitted electronically or on a paper form: Annual information return for dividend

Total dividends or profit surplus to distribute

The total distributable dividends or profit surplus for the 2018 accounting period (as the principal distribution of profits).

If no dividends or surplus are distributed, leave the entire section blank.
Also include any dividends or surplus paid out to shareholders from an unrestricted reserve of retained earnings.

Under Companies Act, it is permissible to distribute profits for an accounting period that is still ongoing (as interim dividends, "väliosinko" in Finnish) and to distribute dividends for the previous accounting period, when a new financial statement is not yet complete or audited. In taxation, these dividends are also considered to have been distributed for the accounting period closed last. However, these dividends are not entered in this section; instead, they must be accounted for in a separate enclosure.

If a consolidated enterprise has distributed dividends from one subsidiary company to another (or to parent) in advance, the distributing company must enter the amount of dividends here according to the advance decision.
Dividends paid by a substituting entity are not entered here.

In situations involving corporate restructuring, it must be taken into consideration that a divided company can no longer distribute dividends after the division, because the company no longer exists. See the guideline "Corporate restructuring and taxation – division" for more details on the prerequisites for a company established by division can distribute dividends before the confirmation of its first financial statement.

Distribution from fund for
invested equity

On this line, enter the details of the assets that it has been decided will be distributed from the company's unrestricted equity fund (Chapter 13, §1.1, Companies Act; Chapter 16, §1.1.1 of the Act governing cooperative societies). Enter here only such distribution of assets that is considered to be a disposition of assets.

Dividends or surplus to be distributed are not entered here; it is reported in the previous entry (Total dividends or surplus to be distributed).

Date of decision to pay out dividend or profit surplus (ddmmyyyy) Date of the decision on the distribution of funds.
Date when dividends or profit surplus can be drawn (ddmmyyyy) Date from which the assets were withdrawable.
Total dividends or profit surplus to distribute Enter here the share of the assets that were withdrawable during the tax year.
5 Changes in subscribed share capital after close of accounting period
Share capital was raised by The amount of money raised, if the company's share capital was raised after the close of the accounting period 2018.
Share capital was reduced by The amount of decrease, if the share capital was reduced after the close of the accounting period 2018.
Number of shares after change The number of shares after the change.
Nominal value/book value of one share The share's nominal or book value.
Subscription price of a new share The subscription price of a new share.
Subscription price must be used as the mathematical value of a new share Tick the Yes box if you wish the subscription price to be used as the mathematical value of the new share when dividends paid to the shareholders are divided into capital income and earned income. Otherwise, the division is done based on the share's nominal value or accountable par.
Raised capital Indicate whether a paid-in investment by the shareholders was necessary or whether the capital for the increase of share capital was raised without such a payment.
Company redeemed/purchased/sold its own shares Tick this box if, after the close of the accounting period, the company has redeemed or otherwise acquired its own shares or disposed of them.
Number of own shares held by the company at the end of the accounting period The number of the company's own shares held by the company at the end of the 2018 accounting period.

The calculation of the comparison value of the share for 2018 will also take into account the changes in share capital that occurred during the next accounting period as well as the purchases, redemption and disposal of the company's own shares. Changes for which details were not yet available at the time the tax return was filed must be reported to the Tax Administration within one month of the change.

 Calculation of taxable income

Enter your taxable income and deductible expenses in the Tax accounting column of the calculation of taxation income.

A separate Accounting column is reserved in the Calculation of taxable income for those income and expense items where the amount recorded in the accounts may be different from the amount to be taken into account in the tax assessment.

Both the Accounting and Tax accounting columns must be filled even if the amounts are equal.

To arrive at the corporate taxpayer's net taxable income for the year, the Tax accounting column is used. The revenues subject to tax of the "6 Business income" section are adjusted by deducting the expenses reported in "7 Business expenses".

The Calculation of taxable income is only for reporting the business revenues and expenses, not those that relate to other sources of income.

Personal source of income connected to the corporate taxpayer

Complete Form 7A to report profit and capital gains attributable to the personal source of income.

Examples of activities attributable to a personal source of income:

  • Renting out non-business real estate. The business source of income can only include real estate if the property or building is exclusively used or almost exclusively used for purposes that either directly or indirectly benefit business activities (§53, Business Tax Act).
  • Operating a forestry activity without a connection to the business.
  • Owning securities and stocks in a passive manner.
  • Renting out non-business residential apartments, when this activity is not the corporate taxpayer's business.
  • Lending money to shareholders. If the company has collected interest on the loans it has granted to shareholders, or if the Tax Administration has added an amount to the taxable corporate income because no or too little interest was collected (under §29, Act on Assessment Procedure), the interest income is treated as part of the personal source of 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 (Taxable profits / allowable loss).

You must complete Form 77 instead, reporting the profit or loss from business activities.

Form 77 is also for reporting the profit or loss from any agricultural source of income and personal source of income, as well as the amounts not taken into consideration when calculating the established losses.

Form 77 including filling instructions

Entering amounts of money

Enter the amounts of money at a precision of one cent without a sign.

The default rule is that any revenue will increase profits and any expense will reduce it. If the reported item differs from the presumed value, always use a minus sign (-) as prefix.

Example 1: The company's net sales are negative. Enter a minus in front of 1 Net sales (section 6, Business income).

Example 2: The company received a refund of its leasing fees, which makes the balance of this expense item the inverse of what it usually is. You must enter a minus sign in front of the entry in 4 Leasing costs (section 7 Business expenses).

6 Business income 
1 Net sales

Enter the net sales as recorded in your accounting system.

Net sales comprise the sales income from the partnership's primary operating activity minus the discounts granted, VAT, and other direct taxes based on sales volumes (Chapter 4, §1, Accounting Act).

If your net sales include dividends, you must report them in 4 Financial income (Receipts of dividends and profit surplus) and deduct them from the net sales figure. Correspondingly, deduct the amount of dividends from the net sales before entering the net sales here. 

2 Own consumption of goods or services produced Enter the consumption for your own use as it is in your accounting system.

3 Other operating income

Capital gains for selling shares included in fixed assets

Accounting column:
Enter the total amount of capital gains from selling shares included in fixed assets as it is in your accounting system.

Provide an itemisation of the capital gains from selling shares included in fixed assets on Forms 71A and 71B as follows:

  • On Form 71A, report the items that have no effect on taxation, or the tax-exempt capital gains and non-deductible capital losses.
  • On Form 71B, report the taxable capital gains and deductible capital losses. Capital gains and losses from partnership interests are also itemised on Form 71B.

Tax accounting column:
Transfer here the taxable capital gains from selling shares included in fixed assets and partnership interests calculated on Form 71B. Please note that the amount for this field is obtained by first deducting from the taxable capital gains those capital losses from selling shares and partnership interests that can only be deducted from capital gains

Capital gains from selling shares included in fixed assets (not, however, shares in housing companies or joint-stock property companies) is usually tax-exempt income, if the company has owned at least 10% of the sold or dissolved company for more than a year (§6 b and §51 d, Business Tax Act).

Taxable income therefore includes capital gains from shares in housing companies and joint-stock property companies, capital gains from shares owned for less than a year, and the sales of shares in a company of which the corporation has owned less than 10%. The capital gains of a corporation conducting equity investment business are always taxable.

Also enter here the items reported 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:

  • Revaluation decreases of shares previously approved in taxation (§42, Business Tax Act)
  • Provision or funding deducted from the purchase price
  • Deductible capital loss from the sale of shares in a consolidated enterprise between subsidiary companies.

Read more on the taxation of the selling of shares included in fixed assets (Tax Administration Instructions Taxation of the sales of a corporation's shares).

Capital gains for selling other fixed assets 

Capital gains for the sale of fixed assets other than shares, such as profit from the sale of buildings, land areas and fixed assets referred to in §33 of the Business Tax Act. 

§33 of the Business Tax Act applies to fixed assets with an economic life of no more than three years, any low-value assets, and motor vehicles used in a transportation business.

This line is not for the capital gains from sales of moveable assets if the sale is not entered in the books with P/L effect (the gain is instead entered in the depreciation account as a difference). Report such gains in section 13, "Other tax-exempt revenues of the P/L", and the depreciation difference in section 3, "Depreciation and reduction in value of fixed assets", of part 7, "Business costs". (Also read the filling instructions for Form 62)

Received subsidies and public support

Grants, supplements and subsidies relating to business activities (from the Ministry of Economic Affairs and Employment, Ministry of the Environment, TEKES, etc.) which have been recorded in the accounts using the direct method.

 
Other revenues from sideline business 

Taxable revenues (other than the above) included in P/L.

Examples of these taxable revenues:

  • gains received from a sale of a line of business
  • received refunds of leasing fees
  • received insurance indemnities
  • rental income from real estate units rented out
  • rental income from space used for employee recreation
  • received income from office services supplied. 

4 Financial income 

Receipts of dividends and profit surplus 

Accounting column:
Total received dividends, profit surplus and other items of profit-sharing nature as recorded in accounting. Also include here advance dividends as regular dividends. Also include refunds of profit surplus received from a cooperative society that can treat them as a deductible cost (§ 18.4, Business Tax Act).

Other items of profit-sharing nature under § 6 d, subsection 7 of the Business Tax Act are

  • the profit share and interest paid by a co-operative bank
  • interest on a capital-protected fund paid by a mutual insurance company and an insurance association.

Enclose an itemisation of the dividends and surplus on Form 73. However, if all your dividends are fully exempt from tax and sourced in Finland, you don't have to complete Form 73.

For more detailed information on the taxation of dividend income, see the filling instructions for Form 73

Detailed instructions on the taxation of dividend income (Osinkotulojen verotus, Doc No. A207/200/2013)

Additional information on the asset distribution and surplus of cooperatives

Tax accounting column:
Enter the taxable portion of your dividend and surplus receipts, which is the result of the Form 73 calculations.

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, Business Tax Act) are taxable income.

Similarly, report any REIT company dividends, because the entire amount is taxable income for you.
If you have a Controlled Foreign Company and have received dividends from it, fill out Form 74 and include the taxable portion of the dividends.

Interest income on intra-group loans 

Interest income on money lent to domestic and foreign companies of the group, or to companies associated with you otherwise.

Example: the interest payments received from companies belonging to the same group (Chapter 1, §6, Accounting Act).

Debt between associated parties may be direct or indirect. It is direct when an associated relationship exists between the parties under § 31, Act on Assessment Procedure (§ 18 a, subsection 5, Business Tax Act). A debt between a company and an unassociated party is considered to be an indirect debt between associated parties when either of the following conditions is fulfilled:

  • the associated party has a receivable from the party that took out the loan and this receivable is connected to the debt; or
  • the debt collateral is a receivable from an unassociated party (§ 18a, subsection 6, Business Tax Act).

Interest income from associated debt may additionally include amounts relating to indirect debt under §18a, subsection 1, Business Tax Act, if they are not entered in the books as interest income from companies belonging to the same group (Chapter 1, §6, Accounting Act). For this reason, the total interest income entered on this line may be higher than that recorded in the accounting system.

Interest income on associated/ affiliated companies  Interest income received from companies where there is a participating interest (Chapter 1, §7, Accounting Act). 
Other interest income

Other interest income such as bank accounts and bank deposits.

If the interest is paid to the company by its shareholders who have borrowed money, do not enter it here because that income is attributable to the personal source of income of the corporate taxpayer.

Shares of profits for consortia

Accounting column:
Enter the amounts as they are in your accounting system.

Shares of profits for consortia are tax-exempt income.

Such profits, calculated under the provisions of §16 and §16a, Income tax act, are taxable income in the hands of the shareholders of the consortium.

Tax accounting column: Taxable portions of profit shares

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

Leave the line blank if the taxable portions are not known yet. Send additional information to the Tax Administration later if the actual size of the profit share is determined after you file the tax return.

Capital gains for selling financial assets Capital gains for selling financial assets, for example capital gains from the sales of securities included in financial assets.
Other financial revenues Other financial income, such as exchange rate gains.
5 Revaluation gains

Accounting column:

  • Revaluation gains from financial assets as they are in your accounting system (§5 a, subsection 1 of Business Tax Act).
  • Revaluation gains from current assets (§5a, subsection 3, Business Tax Act)
  • Revaluation gains from fixed assets (§5a, subsection 5, Business Tax Act)

Tax accounting column:
Revaluation gains are usually taxable income and entered here. However, revaluation gains are tax-exempt income when the depreciation of fixed assets done on the basis of the matching principle (under §42 of the Business Tax Act, for example) was not approved as a tax-deductible expense.

6 Extraordinary income Enter here the intra-group contribution received by the corporation. Also provide an itemisation of the intra-group contributions on Form 65.
7 Income from decreases of reserves

Accounting column:
The decreases of mandatory and taxation-based reserves as they are in your accounting system.

Tax accounting column:
Taxable portion of the decreases of reserves. Taxable decreases include the following:

  • An unused replacement reserve (§ 43, Business Tax Act)
  • 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, Business Tax Act).
Itemise the reserves entered into the accounting on Form 62.
8 Shares of profits in Controlled Foreign Companies

The corporation's share of a Controlled Foreign Company's profits for the tax year. Deduct the corporation's share of the same CFC's losses from the five previous years, if any, from this amount.

Provide the details of each CFC and calculate the company's share of the profit or loss of each CFC on Form 74.

A Controlled Foreign Company means a foreign company that is under the control of resident taxpayers in Finland, whose actual level of income taxation of which is less than 3/5 of the level of Finnish corporate tax. A permanent establishment of a foreign company located in a low-tax country may also constitute a Controlled Foreign Company. A company with a domicile within the European Economic Area or in a Tax-treaty country is not considered to be a Controlled Foreign Company if Finland has agreed on the necessary information exchange with said country. Furthermore, it is required that the company is genuinely located in the country in question.

A shareholder is taxed on the profits of the CFC if their ownership of the company either alone or together with others with the same shared interests is at least 25%, or they are entitled to a share of at least 25% of asset revenue If the CFC is a subsidiary or an affiliate, as defined in the Accounting Act, enclose its financial statements for the accounting period and the previous accounting period with the tax return.

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

Other taxable revenues not recorded in the profit and loss account for the accounting period.

Taxable revenues not recorded in P/L for the accounting period may include differences caused by the different period regulations of accounting and taxation. Such differences may occur in property development. Read more in the guideline, Property development business in taxation.

Please note that profit from the sales of the company's own shares is not taxable income and does not need to be entered here

10 Taxable business income, total

Enter the total sum of items 1 to 9 in the Tax accounting column, representing the total taxable business income.

11 Refund of tax

Enter any tax refunds entered as profit in P/L.

Include any interest paid on refunds. The interest is tax-exempt.

12 Movie production incentive

Movie production incentive (cf. § 6, subsection 1, item 5, Business Tax Act).

13 Other tax-exempt revenues of the P/L

The total amount of other tax-exempt income recorded in the profit and loss account.

Other tax-exempt income include merger profit (152 b, Business Tax Act).

Connection fees charged by a corporation maintaining an electrical, telecommunications, water supply or district heating network are tax-exempt revenues, if they are refunded to the payer. However, transferable connection fees are taxable income, and they are not entered here (amended in §6, subsection 1, item 3, Business Tax Act).

Also report here the capital gains from movable assets subject to wear and tear covered by indirect income recognition (§ 30 of Business Tax Act).

7 Business costs

1 Raw materials and services 

Purchases, variation in stocks and inventory  Enter here
  • Acquisition costs of any goods that were retired from the business during the accounting year
  • Purchases during the accounting period
  • The change in the inventory of finished goods and work-in-progress (including both added and diminished inventory balance). 
External services  The total amount of external services acquired by the corporation. 

2 Staff expenses  

Wages and salaries  Wages and salaries as they are in your accounting system. 
Pension expenses  Pension expenses as they are in your accounting system. 
Other staff expenses  Other non-wage staff expenses as they are in your accounting system. 

3 Depreciation and reduction in value of fixed assets  

Depreciation 

First itemise the depreciations on Form 62.

Accounting column:

Enter the depreciation expenses booked according to plan, including all depreciation and differences in depreciation that has a profit-and-loss effect.

Transfer the total from Form 62 to this field.

Tax accounting column: Deductible portion

Transfer the depreciation permitted by Business Tax Act, including additional amounts and specific tax-relief depreciation expenses from Form 62 to this field.

  • Depreciations permitted by the Business Tax Act mean depreciations that are tax-deductible under Sections 24, 30-34 and 36-41 of the Business Tax Act.
  • The depreciations reported here must match the total amount of Business Tax Act depreciations reported on Form 62 (items 5 and 6 in the depreciation columns).

Also report here any depreciation from previous years which has not been claimed for tax purposes ("reserved depreciation") and which the company plans to deduct this year.

  • Itemise the depreciations that were not approved or deducted in previous years on Form 12A.
  • You must also fill in Form 12A in the year a new "reserved depreciation" is being established.

Although it may be permitted under international accounting standards, assets you have under a leasing contract are not subject to depreciation for tax purposes. Neither are such expenses entered in the Tax Accounting column.

Read more in the filling instructions for Form 62.

Reduction in value of fixed assets 

Accounting column:

Decreases in the value of fixed assets, as shown by accounting, which have not been reported in association with depreciation.

Tax accounting column: Deductible portion

The portion of the reductions in value of permanent fixed assets that is deductible under § 42, Business Tax Act.

Deductible portions include only:

  • Reduction in the value of securities other than shares.
  • Reduction in the value of permanent fixed assets other than land areas when the fair value of the asset at the end of the tax year is significantly lower than the undepreciated purchase cost.

5 Other operating costs

Entertainment expenses 

Accounting column:

All entertainment expenses recorded in your accounting. Information on entertainment expenses and the concept of entertainment expenses (in the guideline, Entertainment expenses in income taxation).

Tax accounting column: Deductible portion

  • Half (50%) of the entertainment expenses (§8, subsection 1.8, Business Tax Act). 
Donations granted 

Accounting column:

All donations granted by the corporation as recorded in your accounting.

Tax accounting column: Deductible portion

The deductible portion of the granted donations.

Only reasonable donations granted to a non-profit corporation, generally granted for a local purpose or a purpose close to the corporation's line of business, are deductible.

Under certain conditions, corporations may also deduct some donations that are granted for the purpose of conserving cultural history or promoting science or arts, and amount to at least €850 (§ 57, Business Tax Act). 

Capital losses for selling securities / fixed assets 

Accounting column:

Capital losses from selling shares and partnership interests included in fixed assets as recorded in your accounting.

Provide an itemisation of the capital losses from selling shares and partnership interests included in fixed assets on Forms 71A and 71B as follows:

  • On Form 71A, report the items that have no effect on taxation, or the tax-exempt capital gains and non-deductible capital losses.
  • On Form 71B, report the taxable capital gains and deductible capital losses. The deductible capital losses can be either unlimited or they may only be deducted from capital gains during the tax year and the five years following.
  • Capital gains and losses from partnership interests are also itemised on Form 71B.

Tax accounting column: Deductible portion

The capital losses for selling shares and partnership interests included in fixed assets with unlimited deductibility. These comprise

  • Capital losses resulting from the fixed assets of a corporation conducting equity investment activities.
  • Losses resulting from the selling of shares in a housing company or a real estate company and equivalent included in the corporation's own business activity.

Please note that a capital loss is usually non-deductible and the corresponding capital gains tax-exempt), so do not enter it here.

In some cases, you can deduct a capital loss only from the taxable capital gains for selling shares included in fixed assets during the tax year or five years following.

  • Such capital loss deductible from capital gains is deducted already when calculating the taxable portion of capital gains, reported in item 3, "Other operating income" in Section 6 "Business income". For this reason, the capital loss is not entered here even in those cases.

More information on the deductibility of capital losses (in the guideline, Taxation of the sales of a corporation's shares).

Capital losses for selling other fixed assets 

Losses from the sale of assets such as land, smaller fixed assets or a motor vehicle that has been used in the transport business (§ 33, Business Tax Act).

Do not enter the losses that are not entered in the profit-and-loss account (i.e. it is instead entered as a difference between planned and book depreciation). This type of loss is reported as non-deductible costs in "Other non-deductible costs". Line "Depreciation" in the Accounting column under Section 3, "Depreciation and reduction in value of fixed assets" is for entering the resulting change in the difference between planned and book depreciation. 

Leasing costs  Leasing costs as they are recorded in your accounting system. 
Write-offs within Accounts Receivable  The write-offs within accounts receivable (§ 17, item 2, Business Tax Act). 
Other deductible business costs 

Enter any deductible business costs that are not entered in the lines of the Tax Accounting column as other operating costs in Section 4, "Other operating costs".

Examples of such costs include the following:

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

Also enter the tax-deductible Public Broadcasting Tax and Real Estate Tax paid.

Non-deductible costs  

These lines are for information on non-tax-deductible cost items recorded in company accounting 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 

Enter any tax costs with P/L effect. 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 in this line because it is treated as a tax-deductible expense. 

Tax increase 

All tax increases are non-deductible regardless of which tax they concern.

Also enter a late filing fee, any discounted late payment interest, late payment interest or penalty fee for neglecting to file a return. They are also non-deductible. 

Fines and other penalties 

Enter any payments of fines, sanctioned penalties and similar (§ 16, item 5, Business Tax Act). 

Merger loss 

Merger loss (§ 52 b, Business Tax Act). 

Reduction in value of shares included in fixed assets 

Enter here the reduction in the value of shares included in fixed assets.

A reduction in value depreciation of shares included in fixed assets is non-deductible in taxation. 

Statutory reserves 

Statutory reserves made in accounting. Statutory reserves are not usually deductible in taxation.

A statutory reserve means future expenses incurred by obligations as referred to in Chapter 5, Section 14 of the Accounting Act, the precise amount or the date on which they will arise being uncertain.

Such future expenditure and losses may be incurred by the renovation or closing down of a production line or production facility used in the business activities, warranty repair liabilities for sold products, claims on defective products and compensations 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 building, bridge, aeroplane or other such large machinery unit (§ 47, Business Tax Act). A deductible warranty repair provision is entered in the Tax accounting column of Section 8, "Increases of reserves".

 
Other non-deductible expenses 

Enter here any other non-deductible expenses.

Non-deductible expenses include:

  • Expenses incurred as a result of generating or maintaining tax-exempt income. However, the portion of expenses exceeding the tax-exempt income is deductible (§ 16, item 2, Business Tax Act).
  • Fees paid for a connection to an electricity, telecommunications, water supply, sewer or district heating network and refunded to the corporation if it waives the benefit produced by the connection fee (§ 16, item 3, Business Tax Act).
  • Bribes and benefits of a bribe-like nature given.
  • Amount paid by the company for its own shares, unless the shares were handed over based on employment(§ 16 item 9 and § 18, subsection 3 of the Business Tax Act).

Financial expenses  

Interest on intra-group loans 

Interest expenses paid to domestic and foreign parties of intra-group loans.

Deductible portion (§ 18 a, Business Tax Act) 

For example, interest paid by the corporation to companies belonging to the same group (Chapter 1, Section 6, Accounting Act).

Debt between associated parties may be direct or indirect. It is direct when an associated relationship exists between the parties under § 31, Act on Assessment Procedure (§ 18 a, subsection 5, Business Tax Act). A debt between a corporation and an unassociated party is considered to be an indirect debt between associated parties when either of the following conditions is fulfilled:

  • the associated party has a receivable from the party that granted the loan and this receivable is connected to the debt; or
  • the debt collateral is a receivable from an unassociated party (§ 18a, subsection 6, Business Tax Act).

Interest expenses from intra-group loans may additionally include amounts relating to indirect debt under § 18 a, subsection 1, Business tax act, that are not entered in the books as interest income from companies belonging to the same group (Chapter 1, § 6, Accounting Act). For this reason, the total interest expenses entered on this line may be higher than that recorded in the accounting system.

Tax accounting column: Deductible portion (§ 18 a, Business Tax Act)

Enter all the deductible interest expenses for intra-group loans in this line. The interest expenses are always deductible, maximum deduction being the amount of your interest income. All interest is also deductible if the company's net interest expenses (interest expenses exceeding interest income) do not exceed €500,000.

Fill in Form 81 (Explanation of net interest expenses) if the company's net interest expenses exceed €500,000. Net interest expenses exceeding this sum are deductible, maximum deduction being 25% of your adjusted business profits. The amount of net interest expense that cannot be deducted is maximally equal to the net interest expense between the companies that have an associated relationship.

  • Transfer the net interest expense (on associated debt) from Form 81 into this field. 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).
Interest paid to associated / affiliated companies  Interest income paid to companies where there is a participating interest (Chapter 1, §7, Accounting Act). 
Other interest paid

Other interest expenses, e.g. relating to

  • Accounts payable
  • Bonds
  • Convertible bonds
  • Bank loans
  • Finance company loans
  • Pension company loans
Bills of exchange.
Group support and write-offs of Acc Receivable 

Group support granted to a company of which the corporation alone or together with subsidiary companies (cf. § 6 b, subsection 7, Business Tax Act) owns at least 10%.

Also report other such expenses paid in order to improve the financial status of another company without a reciprocal payment. Also report the write-offs and depreciations of the receivables (not, however, of accounts receivable) from such company.

These items are not tax-deductible (§ 16, item 7, Business Tax Act). 

Losses of other financial assets and final reductions in value 

Accounting column:

Losses of other financial assets and final reductions in value as recorded in your accounting system. These include losses caused by embezzlement, theft or other crime.

Tax accounting column: Deductible portion

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

  • Losses of financial assets are deductible (§ 17, item 1, Business Tax Act).
  • Final reductions in the value of financial assets are also usually deductible under § 17, item 2 of the Business Tax 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 Acc Receivable").
Capital losses for selling financial assets  Capital losses for selling financial assets as recorded in your accounting, such as losses incurred from the sale of a security or receivable included in financial assets. 
Other financial expenses Other financial expenses as shown by accounting, for example
  • Loan management fees
  • Bank overdraft facility fees
  • Bank guarantee commissions
  • Credit insurances
  • Mortgage expenses
  • Recovery expenses
  • Exchange rate losses
  • Factoring expenses
  • Termination expenses.
6 Tax-deductible surplus refund of a co-operativev

Report here the tax-deductible surplus refund of a co-operative under § 18, Business Tax Act.

7 Intra-group contribution given

Enter here the intra-group contribution given by the corporation. Also provide an itemisation of the intra-group contributions on Form 65.

8 Increases to reserves

Accounting column:

Increases in tax-based reserves, as shown by accounting. Itemise the reserves on Form 62.

Tax accounting column: Deductible portion

The portion of tax-based reserves that is tax-deductible.

A corporation using Form 6B may deduct only the increases to a replacement reserve referred to in §43 and warranty reserve referred to in § 47 of the Business Tax Act.

9 Other deductible expenses (not included in P/L)

Any such tax deductible expenses that are not included in the profit and loss account for the accounting period.

Report here, for example, performance-based dividends. Dividends from non-listed companies are income, if the distribution basis is the work effort of the recipient of the dividends or of a person in their sphere of interest (§ 33 b, subsection 3, Income Tax Act). For more information, read the guidelines, Taxation of dividends based on work effort, Doc. No.1103/32/2009).

Also enter here the training deduction claimed by the corporation in taxation. Also submit an explanation of the training deduction on Form 79.

10 Tax-deductible business costs, total

The sum total of the items in the Tax accounting column, or the total amount of tax-deductible business costs.

8 Taxable profits or deductible losses

Report here the business income source's profit or deductible loss for the tax year 2018.

Do not enter losses from previous years on the tax return. The Tax Administration subtracts them automatically, provided that there are no changes described in Section 13, "Changes of the shareholding, information on past losses". You can check the amount of losses from the tax decision.

If the corporation has income from a personal source of income, itemise the profits and losses on Form 7A.

If the corporation has income from an agricultural source of income, itemise the profits and losses on Form 7M.

Profit from business activities

Enter the profit from business activities here, if the amount is positive.

You can obtain the profit from business activities by subtracting the tax-deductible business costs (Part 7, Section 10) from the taxable business revenues (Part 6, Section 10).

Loss from business activities

Enter here the deductible business loss, usually the negative difference between taxable business revenues (Part 6, Section 10) and tax-deductible business costs (Part 7, Section 10).

If, however, the costs include donations or intra-group contributions granted (Amounts not taken into consideration), subtract the loss reported here with their amount, as such items are not taken into consideration when confirming the loss.

Amounts not taken into consideration

Payments of intra-group subsidy, reserves on the balance sheet for residential dwellings, and donations are amounts not taken into consideration (§57, Income tax act).

The deduction based on the giving of a donation is not taken into consideration when the corporate taxpayer's loss is determined (§57, Income tax act), because it is based on special tax rules. However, it is taken into consideration in case the calculation concerns a personal source of income for which a loss is made.

Calculation of net worth

All companies must report the information required for the calculation of net worth, as this information is needed for statistical purposes, for example. However, listed companies may report their assets and liabilities as their balance sheet values, because net worth and the mathematical value of the share does not affect the taxation of the dividends distributed by these companies. Furthermore, the comparison values of these companies' shares are determined by the trading values, and are not based on the balance sheet.

Here, a listed company means a company the shares or a series of shares of which is publicly traded on a stock exchange in Finland (on the list or Pre-list of NASDAQ OMX Helsinki), elsewhere in the European Economic Area or in other such market outside the European Economic Area.

Credit and insurance institutions and companies conducting investment service activities (both listed and unlisted) do not need to complete the calculation of net worth in full. They only need to report the total amount of assets, the total amount of liabilities and their difference (under "Net worth - Positive" or "Net worth - Negative").

Companies not conducting business activities itemise their assets in the column section "Other long-term investments (Income Tax Act)", liabilities in Section 10, "Liabilities" and capital, equity and reserves in Section 11, "Capital, Equity and Reserves".

9. Assets

Enter the assets in the amounts of undepreciated purchase costs unless otherwise specified in the instructions. The values of the calculation of net worth may differ from those on the balance sheet.

Fixed assets and other non-current investment

The business assets intended for permanent use are fixed assets (§ 12, Business Tax Act).

In accounting, they are normally included in the Non-Current Assets category of accounts.

Examples of fixed assets that are subject to wear and tear include

  • Buildings
  • Machinery
  • Equipment and other fixtures
  • Patents and other intangible assets that are separately transferable.

Itemise the depreciation expenses relating to your fixed assets subject to wear and tear including any changes in the differences between planned and book depreciation on Form 62.

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

The total value of intangible assets.

Intangible assets include

  • Patents
  • Copyrights
  • Trademarks
  • License fees
  • Concession rights
  • Licence fees for computer software.
Other non-current investments 

Capitalised long term expenses that have net asset value (see Section F of Form 62, Other non-current investments (§ 24 and § 25, Business Tax Act), item 7, "Undepreciated acquisition cost at the end of the tax year").

These comprise expenses that accumulate or retain income for three or more years. Of these expenses, expenses that must be capitalised according to the Business Tax Act are deemed to be assets, for example. Such expenses referred to in § 24 of the Business Tax Act include rental flat improvement costs and goodwill. Development expenses, for example, could have net asset value according to legal practice.

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 book merger difference has net asset value, it is included in the receiving company's net worth (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.
Itemise the information on Form 18.

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

The comparison is done separately for each real estate unit.

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

According to § 6 of the income tax act, 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 is also transferred.

If the corporation's accounting period ends between 1 January and 30 September 2018, the taxation value for 2017 is used exceptionally as the comparison value, because the taxation value for 2018 has not yet been confirmed at that point.

If the corporation's accounting period ends between 1 October and 31 December 2018, the taxation value for 2018 is used as the comparison value.

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 from wood etc.
  • 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 

Total acquisition cost of machines and equipment not depreciated for tax purposes.

Machinery and equipment includes, among others,

  • Machines and installations
  • Lorries and vans
  • Passenger vehicles
  • Commercial vehicles
  • Furniture
  • Rental machinery and equipment that you offer for rent.
If you have equipment in your company held under a leasing contract, it is not regarded as being part of fixed assets for tax purposes. Do not enter its value here. 
Cash advances paid  Cash advanced paid, included in fixed assets. 
Securities included in fixed assets (Form 8A) 

On Form 8A, compare the acquisition cost not depreciated for income tax purposes and the comparison values of securities included in fixed assets, financial assets and other non-current investments (Income Tax Act assets).

Transfer here the interim amount of securities included in fixed assets from the column in which the total value of the securities is higher.

The value of shares is 70% of the closing price of the share on the last day of your company's accounting period. See the share prices here (www.nasdaqomxnordic.com). You can find price information at the close of the company's accounting period on this website.

The comparison value of a mutual fund share and a share in UCITS is 70% of the fair value at the end of the calendar year.

The comparison value of an unlisted share is indicated in the taxation decision of the company whose share it is.

The taxation value for 2005 is used as the comparison value for apartment 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 market options or shares in a co-operative. The acquisition cost not depreciated for income tax purposes of these securities is also entered in the Comparison value column on Form 8A. 

Receivables from companies within same group 

Receivables from companies within the same group included in the fixed assets.

Here, companies within the same group mean parent companies and subsidiaries in accordance with the Accounting Act (Chapter 1, § 6). 

Receivables from associated / affiliated companies  Receivables from associated / affiliated companies included in fixed assets (Chapter 1, 7, Accounting Act). 
Other non-current receivables  Other receivables included in fixed assets. 
Other fixed assets

Other assets included in fixed assets.

Other fixed assets may include living fixed assets, pieces of art and collectible assets.

Fixed and non-currents assets, total The total value of all fixed assets reported above.

Current assets

Under § 10, Business Tax Act, 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.

Report the value of current assets as the acquisition cost from which revaluation deduction, if granted, has been deducted (§ 28, subsection 1, Business Tax Act).

Raw materials and consumables

These include raw materials, processing aids and consumables.

They may be directly connected to the manufacturing of the goods intended for sale or the maintenance of machines and equipment used in the manufacturing.

To raw materials and consumables

Work in progress

Work in progress means self-manufactured goods intended for sale, the manufacturing process of which is unfinished at the end of the accounting period (semi-finished goods).

A work in progress can be material or immaterial.

  • Immaterial current assets include the unfinished design work of an architectural or design company, or an unfinished movie the performing rights of which the company intends to sell once the movie has been completed.
Finished products

Finished products mean goods that the company itself has manufactured to a state where they are ready for delivery.

Finished products also include by-products and manufacturing waste created during the production activities of a manufacturing company.

Goods

Goods include assets acquired from an external supplier and intended for sale as such.

If you are engaged in wholesale or retail trade activities, the packaging materials acquired for the purpose of selling the goods can also be added to goods.

Real estate and buildings / current assets Real estate and buildings included in current assets.
Securities included in current assets Securities included in current assets.
Other current assets Other assets included in current assets. These include cash advances paid, included in current assets.
Current assets, total The total amount of the current assets reported above.

Financial assets

Financial assets include cash and cash equivalents, notes receivable and other such amounts (§ 9, Business Tax Act).
Additionally, the company's accounts receivable and cash reserves in the form of securities are also regarded as financial assets.
Enter the nominal value for receivables included in financial assets, and the acquisition cost of other financial assets. First, subtract the depreciation allowance from both values as specified in § 17 of the Business Tax Act.

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 of the balance-sheet date (Chapter 5, § 3, Accounting Act).

Accounts receivable All long-term and short-term receivables, instalment account receivables, and other similar assets.
Receivables from companies within 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 Receivables from associated / affiliated companies (Chapter 1, § 7, Accounting Act); not, however, accounts receivable.
Loans receivable

Other than above-mentioned loan receivables, such as long-term and short-term receivables from the staff and management.

Please note that loan receivables from shareholders are not entered here; instead, they are entered as other non-current investments under "Shareholder borrowings", because they are included in the corporation's Income Tax Act source of income.

Other receivable

Other receivables may include tax receivables, security deposits, paid collateral and claims for compensation.

Deferred tax assets (Chapter 5, § 18, Accounting Act) are not included in the assets when calculating net worth. However, tax assets are entered here if they are due to taxes entered for the accounting period on an accrual basis.

Securities included in financial assets (Form 8A)

Securities included in financial assets.

Itemise the securities included in current and financial assets and other long-term investments (Income Tax Act) on Form 8A. Transfer the interim amount (Financial assets, total) to this line of Form 6B from the column the total amount of which at the bottom of Form 8A is higher.

Prepayments and Accrued income Report prepayments and accrued income here.
Percentage of completion receivables Report the percentage of completion receivables here.
Cash in hand The company's cash in hand.
Cash in banks Cash in banks include bank assets, bank deposits, investment assets and currency assets.
Other financial assets Other than the assets included in financial assets itemised above.
Financial assets, total The total value of all financial assets reported above.

Other long-term investments (Income Tax Act)

Assets that are outside your business and taxed under the Income Tax Act must not be included in the above lines for fixed assets, current assets or investment assets. Instead, enter them in the items below.

Enter all assets as amounts equalling their undepreciated, residual acquisition cost unless the instructions state otherwise.

Securities (Form 8A)

Securities outside your business.

Itemise the securities included in current and financial assets and other long-term investments (Income Tax Act) on Form 8A. Transfer the interim amount (Other long-term investments) to this line from the column at the bottom of Form 8A the total amount of which is higher.

Real property and buildings

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 taxation purposes) or a comparison value (= taxation value), whichever is higher.

If the company's accounting period ends between 1 January 2018 and 30 September 2018, use the property's taxation value for 2017 in the comparison.

Shareholder loans

The total amount of loans granted to shareholders and their family members on the balance sheet date.

Provide a shareholder-specific itemisation of the shareholder borrowings in Section 2 or on Form 72.

Other assets enumerated by Income Tax Act Other assets that do not serve the business purposes of your company not itemised above.
Other long-term investments (Income Tax Act), total The total value of all of the Income Tax Act assets, or other long-term investments (Income Tax Act), reported above.
Assets total Enter the total of fixed assets, current assets and financial assets and other long-term investments (as defined in Income Tax Act).
10 Liabilities
Bonds and debentures The short-term and long-term bond loans, debenture loans and other debenture stock issued by the company.
Convertible debentures  The short-term and long-term convertible debentures taken out by the company. 
Loans from financial institutions  Enter here
  • Short-term and long-term loans from financial institutions
  • Loans from financing companies and the amortisations of these loans
  • Factoring credit accounts
  • Other short-term loans from financial institutions. 
Accounts payable  Report here:
  • Short-term and long-term accounts payable
  • Instalment accounts payable
  • accounts payable to associated / affiliated companies and group companies
  • accounts payable for investments and advance invoices
  • other accounts payable. 
Amounts owed to companies within the same group 

Short-term and long-term liabilities to companies within the same group but not, however, accounts payable.

Here, report the following, for example

  • Prepayments from group companies
  • Financial bills of exchange from group companies
  • Other liabilities to group companies
  • Accruals and deferred income to group companies.

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

If the group has used an advance dividend system, the distributing company does not include this dividend distribution debt in its liabilities; instead, it subtracts it from its net worth in the same way as the total dividends to be distributed.

Amounts owed to associated / affiliated companies 

Short-term and long-term liabilities to associated / affiliated companies (Chapter 1, § 7, Accounting Act); not, however, accounts payable.

Here, you must therefore report advance payments and financial bills of exchange received from associated / affiliated companies, and other liabilities and accruals and deferred income to associated / affiliated companies. 

Amounts owed to shareholders  Short-term and long-term liabilities to shareholders and their family members. 
Accruals and deferred income  Long-term and short-term accrued expenses and deferred income, which include
  • Rental income received in advance
  • Interest income
  • Accrued investment grants
  • Other deferred income
  • Wage expenses for the accounting period on an accrual basis
  • Holiday pay expenses. 
Advances received, long-term  Long-term payments received by the company in advance. 
Advances received, short-term  Short-term payments received by the company in advance. 
Other liabilities  Other liabilities may include
  • Long-term pension loans
  • Financial bills of exchange and liabilities to employees
  • Short-term financial bills of exchange
  • Tax withholding payable
  • Social security contributions payable.

The liabilities of an insurance institution, insurance company, pension institution, pension foundation and pension fund and such provisions made in order to improve the solvency of such an actor (Act on the Valuation of Assets for Tax Purposes, § 2, subsection 3).

The connection fees received by electricity, telecommunications and other such companies constitute liabilities, if they involve a refund obligation (Act on the Valuation of Assets for Tax Purposes).

Calculated tax liabilities, as defined in the Accounting Act (Chapter 5, § 18), are not deemed as liabilities in the calculation of net worth. However, the tax liabilities must be reported here if it is caused by taxes entered for the accounting period on an accrual basis. 

Subordinated loans taken 

The total amount of subordinated loans (Chapter 12, § 1, Limited Liability Companies Act) taken out by the company.

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

Liabilities total 

Liability items in total.

Please note, that the amount here is not necessarily the sum of the items "Current liabilities total" and "Non-current liabilities total". The amount here is calculated according to the tax regulations, while the amounts for the items "Current liabilities total" and "Non-current liabilities total" come from the accounts. 

Current liabilities total  The total amount of current liabilities based on accounts. 
Non-current liabilities total  The total amount of non-current liabilities based on accounts. 
Net worth – positive  Subtract the total amount of liabilities in Section 10 from the total amount of assets in Section 9.
If the difference between assets and liabilities is positive, report it here. 
Net worth – negative  Subtract the total amount of liabilities in Section 10 from the total amount of assets in Section 9.
If the difference between assets and liabilities is negative, report it here. 
Mathematical value of share
  • You can calculate the mathematical value of the share for 2019 by dividing the positive net worth by the number of the company's outstanding shares.
  • The company's shares redeemed or acquired by the company and held by the company are not included in the number of shares when calculating the mathematical value (and comparison value) of the share.
  • The mathematical value of the share is used in the taxation of the dividends paid out to the shareholders in 2019.
Comparison value of share

The comparison value of the share for 2019 is also calculated based on the company's net worth. However, the total distributable dividends and advance dividends (but not dividends paid by a substituting entity) from the 2018 accounting period are subtracted from the net worth before the calculation. Furthermore, changes in circumstances that have taken place after the end of the accounting period, during the next accounting period, such as changes in the number and nominal value of the shares, mergers and divisions.

11 Capital, Equity and Reserves
Report the capital, equity and reserves as recorded in accounting.
Restricted equity
Share capital / Coop capital The company's share, cooperative or other such capital.
Other restricted equity

Restricted equity includes the revaluation reserve as per the Accounting Act, the fair value reserve, and the revaluation surplus (Chapter 8, § 1, Companies Act).

Old reserve funds and share premium accounts are also restricted equity referred to in Chapter 8, § 1 of the new Companies Act (§ 13, Act on the Implementation of the Limited Liability Companies Act).

Unrestricted equity
Fund for invested equity A fund for invested unrestricted equity referred to in Chapter 8, § 2, Companies Act.
Other reserves Any other reserves included in unrestricted equity.
Retained earnings Enter the profits from previous years as recorded in your books here if the total sum of previous years' profits and losses is positive.
Retained losses Enter the losses from previous years as recorded in your books here if the total sum of previous years' profits and losses is negative.
Profit for the year

Enter the profit for the year that closes, as recorded in your books.

The lines below the "Loss for the year" line are available to you for making an additional calculation of the taxable income and the items affecting it. The sum total must be the same as the profits of the year that closes, as recorded in your books.

Loss for the year

Enter the loss for the current year, as recorded in your books.

If you wish, you may make an additional calculation of the losses to be confirmed for carryover and the items affecting it. The sum total must be the same as the losses on your books.

Filling in the following items is voluntary:
Taxable profit

On the first line, enter the sum total of the taxable profits.

You can obtain the total by adding together the positive results of business activities, agriculture and personal source of income.

Retained losses are not subtracted from the profit.

Loss to be confirmed for carryover

Enter the sum total of the losses to be confirmed for carryover during the tax assessment for the accounting period.

You can obtain the total by adding together the negative results of business activities, agriculture and personal source of income.

Non-taxable revenues

Add the non-taxable revenues as recorded in your accounting for the accounting period to the taxable profit or loss to be confirmed for carryover.

You can obtain the non-taxable revenues by adding together the following items on the calculation of taxable income:

+ Capital gains for selling shares included in fixed assets with their taxable portion subtracted
+ Receipts of dividends with their taxable portions subtracted
+ Shares of profits from consortia with their taxable income portions subtracted
+ Revaluation gains with their taxable portion subtracted

+ Income from decreases of reserves with their taxable portion subtracted
+ Refund of tax
+ Movie production incentive
+ Other non-taxable income included in P/L
+ Dividends included in a personal source of income with their taxable portion subtracted and itemised on Form 7A.

Non-deductible expenses

Subtract the non-deductible expenses. You can obtain the non-deductible expenses by adding together the following items on the calculation of taxable income:

+ Depreciations with their deductible portion subtracted (however, depreciations not subtracted in previous years are not entered here)
+ Reductions in value of fixed assets with their deductible portion subtracted
+ Entertainment expenses with their deductible portion subtracted
+ Donations granted with their deductible portion subtracted
+ Capital losses for selling securities / fixed assets with their deductible portion subtracted
+ Direct taxes
+ Tax increase
+ Fines and other penalties
+ Merger loss
+ Reduction in value of shares included in fixed assets
+ Statutory reserves
+ Other non-deductible costs
+ Group support and write-offs of Acc Receivable
+ Losses of other financial assets and final reductions in value with their deductible portion subtracted
+ Increases of reserves with their deductible portions subtracted.

Other reconciliation between accounting book profit / taxable profit

Other reconciliation between accounting book profit / taxable profit, for example:

- Other taxable income (not included in P/L)
- Items not taken into consideration when calculating the established losses
+ Depreciations included in item "Deductible portion" for depreciations that were not deducted in previous years
+ Other deductible expenses (not included in P/L), for example a donation deducted in taxation (§ 57, Income Tax Act) not booked as an expense.

The end result of the additional calculation must equal the profit or loss for the accounting period on the books.

Capital, equity and reserves total The sum total of the capital, equity and reserves items, or the total equity on the books.
12 Auditor's report
The auditors have given their report

The auditor's report must always be submitted as an attachment to the tax return if the corporation is obligated to conduct an audit.

  • Tick the "Yes" box if the auditors have given their report before the tax return was filed.
  • Tick the "No, will give later" box if the auditors have not yet given their report but will at a later date.

If the audit has not been completed before the last filing date of the tax return, the auditor's report must be delivered to the Tax Administration within one month of the completion of the audit.

An electronically filed tax return can be complemented online.

Form 63 must be stapled as the cover of an auditor's report submitted on paper. Send the information to the following address

Verohallinto
Yhteisölomakkeiden optinen lukupalvelu
PL 200
00052 VERO

Tick the "No because no auditor has been appointed under § 4, Auditing Act" box if the company has exercised it's option not to appoint an auditor in small companies under the Auditing Act (1141/2015).

A corporation 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 were over €200,000.
  • On average, the company employed over three persons.

However, an auditor must be appointed if the articles of association, memorandum of association or the corporation's rules so agree.

Furthermore, Chapter 2, § 2, subsection 4 of the Auditing Act lays down certain restrictions on sectors and influence.

Are there any disapproving statements or remarks (§ 15, Auditing Act) in the auditor's report?

Tick the "No" box 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 contains such disapproving statements, remarks or additional notes.

13 Deduction of losses if shares transferred to new owner

Always complete this section if more than half of the corporation's shares have been transferred during a single tax year or in stages over several years. This information affects the right to deduct losses from previous years.

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

Effect of ownership changes

The corporation will lose the right to deduct losses if more than half of its shares have been either directly or indirectly transferred during the loss year or afterwards due to a reason other than inheritance or testament (for example, through a trade or an exchange).
However, the corporation may apply for an exemption from the Tax Administration to deduct its losses regardless of the change in ownership (§ 122, Income Tax Act). Additional information on applying for the exemption (in instruction "How to file an application for advance ruling/exemption and the decision thereon").

Indirect ownership changes, 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 the shares of the shareholder in question changes ownership. In such a case, all shares of the holding corporation or partnership are considered to have changed ownership.

Example: X Ltd owns all shares of Z Ltd. When more than half of the shares of X Ltd change ownership, all shares of Z Ltd are considered to have changed ownership.

Ownership changes of the publicly traded shares of a listed company do not prevent the deduction of losses and unused tax credits.

Deduction of losses if shares transferred to new owner

Enter the tax year in which the transfer took place, if more than half of the shares have changed owner in one transaction during the last ten tax years.

Also enter the tax year in the case that more than half of the shares of the company have changed owner in stages over several years, or indirect ownership changes have taken place in the company over the last ten tax years. In such a case, enter the tax year before which or during which the losses incurred are not deductible due to ownership changes. Also submit an explanation of the ownership changes and times of the changes on a free-form enclosure.

Example: One person owns all 100 shares of the company. She sells 50 shares in 2016 and one share in 2017. More than half of the company shares have thus changed owner, when the ownership changes in 2016 and 2017 are taken into consideration. The company has losses from 2013−2017.

The company enters 2016 as the tax year of the ownership changes and submits an explanation of the ownership changes in a separate enclosure.

The company may not deduct the losses from 2013−2016 from its profits in tax year 2018. During the loss year 2017 only one share changed ownership, so the company may deduct the loss in 2017 from its profits from tax year 2018.

There may be a change in ownership although the shareholders remain the same. Such a situation can arise during a share issue, for example, when the shareholders do not subscribe to new shares in the ratio of their ownership.

If you file the tax return on paper, please remember to date and sign the document.

List of enclosure forms and their instructions:

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