How to fill out Form 6B — Income tax return, corporate taxpayer 2017

(Tax return of business activities / Corporation)

The guidance for Form 6B is abbreviated. Full version is not available in English. To read the full version of the instructions, refer to the Finnish and Swedish pages of our website.

Tax year 2017

  • When you complete the tax return and its enclosures, you must fill in the spaces and lines completely when they 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 2017 calendar year, you must complete a set of tax return forms for each closing of an accounting period. We combine them into an aggregate whole that concerns the 2017 taxable year.
  • Click here for a list of enclosure forms

 

Further information is given by

Enter the name and phone number of an individual who will provide further information to the Tax Administration

Changes in the line of activities

 

Tick the box if your line of business has changed.

Please enter the necessary corrections referring to the TOL 2008 classification of industry sectors.

Visit the website of Statistics Finland to see sector categories at tilastokeskus.fi/index_en.html.

Has activity in Finland (mainland) and Åland Islands

Tick the box as appropriate.

Also tick it if your company only operates in Åland but its registered domicile is in Finnish mainland, or vice versa, is registered in Åland but operates in Finnish mainland.

Enclose free-text information on how the profits/losses should be divided into parts representing 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  (for more information, see the official legal rules of the Province of Åland:  Ålands författningssamling 119/2011).

Under the same provisions, also an entity registered in the mainland must 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. For this reason, corporate entities operating in Åland have double municipal tax. However, the double taxation is eliminated either by the Tax Administration or the Provincial Government (depending on your registered domicile). 

Has IFRS financial statements  

Tick the 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 documentation on transfer pricing (§14a, Act on Assessment Procedure =VML)

(complete Form 78)

Tick the box if the obligation to submit documentation concerns you. Complete Form 78 (Explanation of transfer pricing).

Transfer pricing documentation is required when transactions have been made between group companies in an associated relationship (as provided in § 14, Act on Assessment Procedure), 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 who, alone or together with a sphere of influence, can control both parties to the transaction (§ 31.2, Act on Assessment Procedure).

Transfer pricing documentation must be submitted by businesses that fulfill 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
  • are not small or medium-size enterprises under the definition of the Commission recommendation 2003/361/EC. Nevertheless, it should be noted that most small and medium-sized companies operating in Finland as a member company of a multinational group enterprise are concerned by the obligation to submit documentation on transfer pricing.  When the threshold values regarding employees, net sales and balance-sheet total are examined, the entire group of companies is in focus because of the ownership circumstances
Has received shares in a swap arrangement during the tax year 

Tick the box if one of the following two conditions apply:

  • During the tax year, the company has received shares of another company in a swap (within the meaning of §52f, Business Tax Act). It now holds more than half of the votes of the other company.
  • 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 

This section is for giving details on company shareholders, on amounts paid to them and their family, and on amounts lended to them.

Shareholders can be people, or they can be legal persons.

This section does not have space for more than four shareholders. If you need more space, download Form 72.

When giving the details of a legal person it is enough if you just enter its company name, Business ID, and number of shares held.

If there are 1 to 10 shareholders, you must give details for each one. If there are more than 10, only the ones who hold at least 10% should be included.

You don't have to complete this section if all shareholders have less than 10-percent holding. Tick the box as appropriate.

However, if a shareholder (or a family member) has borrowed money from the company, you must give their details regardless of their percentages of ownership.  

In addition, shareholder borrowing by shareholders who hold at least 10% must be detailed on an annual information return (Employer Payroll Report).

Example: The husband owns 5% and the wife owns 10% of the shares. The nine other shareholders all have less than 10%. In 2012, the husband received €10,000 on loan, and in 2017, the wife received €5,000. You must complete the "2 List of shareholders, shares held, amounts borrowed" section at the end of the 2017 accounting year, filling in both the husband's and the wife's borrowings. You must also file an annual information return (Employer Payroll Report) in order to give details on the wife's loan, for which the date of receipt is in 2017. The reason for this is that together, the husband and wife own more than 10% of company shares.

b) Personal identity code or Business ID

Individuals (=natural persons)

The information to fill in is the personal identity code.

Family member's personal identity code must be filled in, too, if a payment or loan from the company has been directed to family member(s).

Some individuals have a Business ID. It is permissible to fill in the Business ID as an alternative to the personal identity code.

If foreign corporate entities with no Finnish Business IDs are among the shareholders

  • If you use the paper form, leave the space blank.
  • If you use e-filing, enter ddmmyy-UUUU (date of birth-UUUU).

Legal persons, companies  

If the shareholder is a legal person, fill in its Business ID.

If foreign corporate entities with no Finnish Business IDs are among the shareholders

  • If you use the paper form, leave the space blank.
  • If you use e-filing, enter 0000000-0.
Number of shares  

You must indicate how many shares are held by each shareholder (do not enter percentages).

You must always fill in the Number of shares field even though no shareholder loans or other payments are involved.

Payment(s)

If you submit an Employer Payroll Report giving details on the wage income paid for work, you must not repeat the same information in the Payment columns on this form. The only exception from this rule is shareholder borrowing: the details on loans to shareholders must be given on this form and also on Employer Payroll Reports.

Annual information returns (Employer Payroll Reports) are filed in order to report the paid wages, fees, fringe benefits, coverage for travel expenses, and voluntary pension insurance premiums.  Similarly, if the company pays dividends to the shareholders, this is must also be reported on an annual information return. Do not repeat the information on dividends in the Payment columns on this form.
Rent

The total of rent payments made to a shareholder or family member during the accounting year.

Interest

The total of interest payments made to a shareholder or family member during the accounting year.

Assets sold  

The total of payments made to a shareholder or family member during the accounting year because they have sold something to the company, including real estate property, residential or other apartments, securities and motor vehicles. 

Other

The total of other payments made to a shareholder or family member, including commissions paid for designating an asset as a security.

Loans to shareholders

Shareholder borrowing by the shareholder himself/herself or by their family members.

Enter the loan balance as it is in the 2017 balance sheet.

This field is for all loans: you must enter the loans to shareholders that must also be reported on an annual information return (Employer Payroll Report), which are taxable as capital income, and you must also enter the loans to shareholders that are not subject to annual information reporting.

If the borrower (a natural person), their family member, or the two together, are owners of at least 10% of the shares or votes of the company, and they have received or paid back a loan, it must be reported as annual information. Family members are the spouse and children under 18.

More than 4 shareholders

Tick the box if you enclose Form 72 in order to give details on the shareholders and the payments made to them.

All shareholders have less than 10% holding

Tick the box as appropriate:  no shareholder has as much as 10%.

Please note that if a shareholder (or a family member) has borrowed money from the company (during the most recent tax year or previously), you must give their details regardless of their percentages of ownership.

3 Residential property owned by Company and used by majority shareholder/family

This section is for giving details on company-owned apartments/real estate where a majority shareholder or family members have lived in the course of the accounting period.

You must also include leisure property (summer houses) and give details on their use.

The space is enough for one unit of property. If the company owns more than one and a majority shareholder or family live in it, fill in a separate enclosure. Tick the box in 14 List of enclosures — Other.

If several major shareholders live in company-owned homes, you must enter the details of the shareholder who holds the most shares.
Identity number of shareholder

Fill in the majority shareholder's personal identity code.

"Majority shareholder" means a person in a leading position, who alone owns more than 30%, or together with his family owns more than 50% of the shares or more than 50% of the votes.

Live-in period  

Enter the dates, inside the accounting period, when the majority shareholder/family have lived in company-owned property.

Value used in Calculation of net worth

Enter the value of the residential property as indicated in 9 Assets. If they have used only a few rooms in it for living, enter an reduced value.

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

  • Complete Form 18 if the company owns multiple units.

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

  • Complete Form 8A.
  • If your company bought the apartment in 2006 or later, the value you must use is invariably the undepreciated acquisition cost. If a reserve in the balance sheet has been utilized when paying for the apartment, the amount utilized must be added to the value of the apartment.

The value must then be deducted from the total value of the shares held by the majority shareholder for purposes of dividing his/her receipts of dividends in earned income and capital income.

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

Date of decision to pay out dividends

If the company has made a decision to distribute dividends and the 2017 balance sheet and other financial statements were adopted before the tax return is filed, there is no need to enclose an excerpt of the minutes from the meeting of shareholders. 

This requires that

  • the relevant facts about the distribution are fully reported on the return (Form 6B, i.e. this form) and similarly,
  • the facts about the confirming the financial statements and the use of profits or losses — on Form 63.

The same rules apply to cooperative societies that distribute surplus.

If the corporate decision on dividends, additional dividends, surplus, the adoption of the 2017 financial statements, is made after the return is filed, you must inform the Tax Administration of it within one month of the decision date.

If you e-filed the return, you can open it later and add more information to it.

If you paper filed it, use Form 63 or an enclosure to Form 63 — the excerpt of the minutes from the meeting of shareholders. Send the additional information to:

Finnish Tax Administration
OCR Service of corporate taxpayers' returns — Yhteisölomakkeiden optinen lukupalvelu
P.O. Box 200
00052 VERO

If dividends are distributed mid-year or distributed for an accounting period preceding the latest one, you must invariably enclose a separate explanation of the facts and circumstances. Distributions of dividends taking place after the tax return is filed must always be reported on Form 63 or on an excerpt of the minutes from the meeting of shareholders, enclosed with Form 63.

Read more about dividends paid to a shareholder's for work efforts (only in Finnish and Swedish).

Read more about cooperatives.

Date when dividends or profit surplus can be drawn  

If more than one dates or more than one installments are involved, write up a separate enclosure.

For dividends or surplus available for payment during 2017, you must also file an annual information return by the end of January in 2018. The return can be filed electronically or on paper: Annual information on paid dividends (only in Finnish and Swedish).

Total dividends or profit-surplus to distribute

The total distributable dividends or surplus for the 2017 accounting period (as the principal distribution of profits).

If the company does not pay any dividends/surplus, leave 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 for the accounting period before the distribution date in circumstances where a new balance sheet is not yet complete or audited.  However, for tax purposes, these dividends are treated as relating to the accounting period that was closed last. However, they must not be entered in this field. Instead, they must be accounted for on 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 according to the  advance decision.

In case of dividends paid by a substituting entity, do not enter the amount.

Distribution from a fund for invested equity

The part that the shareholders can receive during the tax year as a distribution from an unrestricted retained-earnings reserve (Chapter 13, §1.1, Companies Act; Chapter 16, §1.1.1 of the Act governing cooperative societies).

Only enter the kind of distribution that is treated as a disposition of assets.

If a decision has been made to distribute dividends or surplus, you must not enter it — enter it in Total dividends or profit-surplus to distribute instead.

5 Changes in subscribed share capital after close of accounting period, quantity of own shares

Share capital was raised by:

Enter the amount, if you raised the capital after the balance-sheet date 2017.

Share capital was lowered by:

Enter the amount, if you lowered the capital instead.

Number of shares after the change  

Indicate the total quantity of company shares after the raise/lowering.

Nominal value/book value of one share

Enter the nominal (=face) value or the value in accounting books.

Subscription price of a new share

Enter the €€.

Subscription price is determined on the basis of the mathematical value

Tick Yes if you want the subscription price to be the base for calculations when dividends are paid to shareholders and part of them are to be treated as earned income, the other part as capital income. If the box is not ticked, the base will either be the nominal value or the book value.

Raised capital  

Indicate whether a paid-in investment by the shareholders was necessary or whether the capital was raised without such a payment.

Company redeemed/purchased/sold its own shares  

Tick this box if appropriate.

Quantity of own shares held by the company at the end of the accounting period

Enter the number of shares that, at the end date of the 2017 accounting year, were held by the company itself.

When a calculation is performed for working out the comparison value of the share for the 2017 tax year, any changes in equity, purchases, redemptions, and disposals of own shares, that have occurred after the balance-sheet date i.e. during the next accounting period are included in the calculation. If there are changes in progress, on which no exact details are yet available when you are filing the tax return, the Tax Administration must be contacted afterwards and the exact details reported.

Calculation of taxable income 

Enter your taxable income and deductible expenses in the Tax Accounting column.

The other column labeled Accounting is for any entries of revenue and expenditure where amounts are not the same as in the Tax Accounting column.

However, you must complete both columns even though the amounts might be the same.

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 Costs".

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 a 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 (under §53, Business Tax Act) if the property or building is exclusively used or almost exclusively used for business purposes.
  • Operating a forestry activity without a connection to the business.
  • Owning securities and stocks in a passive manner.
  • Renting out non-business residential apartments, and 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 Office has added an amount to the taxable corporate income because no 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, and include any agricultural source of income and personal source of income in it. Form 77 is also for reporting the amounts not taken into consideration for purposes of calculating the taxable profits and losses.

Entering amounts of money

Always enter the amounts of money into the spaces next to the codes.

Enter accurate figures, don't round out the cents, and don't use plus or minus characters. The default rule is that any revenue will increase profits and any expense will decrease it. For this reason, plus and minus characters 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 character (-) before the amount.

Example 1: Company reports a net sales amount which is 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 account 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 costs).

6 Business income

1 Net sales

Enter the net sales as recorded in your accounting system.

This is the revenue from the sale of goods and services of your ordinary activities, after deduction of sales discounts, VAT and any other taxes directly linked to the sales amounts (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.

2 Own consumption of goods or services produced 

Enter the own use as it is in your accounting system.

3 Other operating income
Capital gains for selling other fixed assets

Capital gains from any sales of fixed assets that are not securities/corporate stock: buildings, land and the capital gains referred to in §33, Business Tax Act.  The provision in §33 concerns 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 13 Other tax-exempt revenues of the P/L and the depreciation difference in section 7 Business costs — Depreciation and reduction in value of fixed assets  (Read the guidance on how to fill out Form 62).

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

For the Accounting column: total received dividends and other distributions of profit as recorded in accounting, including advance dividends, and including refunds of profit surplus (§ 18.4, Business Tax Act) received from a cooperative society that can treat them as a deductible cost.

The following are distributions of profit under § 6d, subsection 7, Business Tax Act

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

Enclose Form 73 with a specification of the dividends received. However, if all your dividends are fully exempt from tax and sourced in Finland, you don't have to complete Form 73. 

Read more (in Finnish and Swedish) on the treatment of dividends in the instructions for Form 73

and the guidance in Tax.fi

Read more about distributions by cooperative societies.

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

If you are a nonlisted 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 lended 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 (under §18a, subsection 5, Business Tax Act). What is regarded as the indirect form of debt between associated parties is the following:

  • the associated party has a receivable from an unassociated party – and this receivable is connected to the debt; or
  • the debt collateral is a receivable from an unassociated party (§18a, subsection 6).

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

The Accounting column: enter the amounts as recorded in your books.

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.

The 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 shared profit is determined after you file the tax return.

10 Taxable business income, total

Enter the Tax accounting column sum, representing total business income.

11 Refund of tax

Enter any tax refunds that must be treated as taxable income. Include any interest paid on refunds. The interest is tax-exempt.

7 Business costs

1 Raw materials and services
Purchases, variation in stocks and inventory 

Enter the following amounts:

  • Acquisition costs of any goods that were retired from the business during the accounting year
  • Purchases of additional goods
  • The change in the inventory of finished goods and work-in-progress (including both added and diminished inventory balance).
External services Enter the total amount of services you bought from outside providers.
2 Staff expenses
Wages and salaries

Total of wages and fees as recorded in accounting.

Pension expenses

Pension expenses as recorded in accounting.

Other staff expenses Other staff expenses as recorded in accounting.
3 Depreciation and reduction in value of fixed assets
Depreciation

First complete Form 62.

For the 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.

For the 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.

  • Reference to Business Tax Act, permitting deductible depreciation expenses (elinkeinoverolaki, EVL):
  • Sections 24, 30–34 and 36–41.
  • Enter an amount that corresponds to the total depreciation under Business Tax Act that you reported on Form 62 (items 5 and 6 on Form 62).

Also, enter any previously unused depreciation that you want to use the current year.

  • Fill in the details on your unused depreciation on Form 12A.
  • If during the current year, your company accumulates more depreciation that you don't use, you must complete Form 12A to report it.
Although it may be permitted under international accounting standards, assets you have under a leasing contract are not subject to depreciation for tax purposes.  For this reason, do not enter such expenses in the Tax Accounting column.
4 Other operating costs
Entertainment expenses

Accounting column: All entertainment expenses recorded in your accounting. For more information (in Finnish; in Swedish), see the Entertainment expenses guidance – Edustusmenot verotuksessa.

Tax Accounting column: Deductible portion 50 % (§ 8.1.8, Business Tax Act)
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). Line “Other non-deductible costs” (Non-deductible costs) is intended for this type of loss, and line “Depreciation” (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 Enter the leasing expenses as they are recorded in your accounting system.
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. Examples of such costs include the following:

  • Additional personnel expenses paid on a voluntary basis
  • Office expenses
  • Motor vehicle expenses
  • System work, hardware and software
  • Other machinery & equipment
  • Travel expenses
  • Sales expenses
  • Marketing expenses
  • Research & Development
  • Administrative expenses
  • Other overhead
  • 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 the lines 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 it.

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 what tax is their base.

Enter additionally tax-like charges such as late-payment fees, surtax and negligence penalties – also these payments are non-deductible.
Fines and other penalties  Enter any payments of fines, sanctioned penalties and similar (under §16.5, Business Tax Act).
5 Financial expenses

Interest on intra-Group loans

Deductible portion (under §18a, Business Tax Act)

Enter the interest expense resulting from your payments of interest on debt received from associated companies.

Example: interest payments to companies of the same group (under 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 (under §18a, subsection 5, Business Tax Act). What is regarded as the indirect form of debt between associated parties is the following:

  • the associated party has a receivable from an unassociated party – and this receivable is connected to the debt; or
  • the debt collateral is a receivable from an unassociated party (§18a, subsection 6).

Interest payments relating to 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 payments made to companies belonging to the same group (Chapter 1, §6, Accounting Act). For this reason, the total interest expense entered on this line may be higher than that recorded in the accounting system.

Accounting column: deductible portion (§18a, Business Tax Act)

Enter all the deductible interest expenses in this line, maximum deduction being the amount of your interest income. You may deduct all your interest expenses if company net interest expense (the amount by which the expense exceeds the income) does not go over the threshold of €500,000.

Complete Form 81 (Explanation of interest expenses — Selvitys elinkeinotoiminnan nettokorkomenoista), if company net interest expense is more than €500,000. You may deduct the part exceeding €500,000 up to a limit corresponding to max. 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.
Other financial expenses

Enter any other financial expenses as recorded in accounting, e.g.

  • Expenses relating to loans
  • Bank charges for maintaining a credit limit
  • Bank charges for guarantee arrangements
  • Credit insurance costs
  • Mortgage costs
  • Collection costs
  • Foreign exchange losses
  • Factoring expenses
  • Expenses for future contracts.
10 Tax-deductible business costs, total Enter the total of the Tax Accounting column, i.e. the total of your deductible business expenses.

8 Profit or loss

This section is for reporting the economic results for 2017 of the business source of income: either taxable profits or allowable losses.

Do not enter any previous years' losses on the tax return. The Tax Administration subtracts them automatically, provided that no changes described in section "13 - Changes of the shareholding, information on past losses" 
Profit from business activities

Enter a positive economic result in this line.

Subtract tax-deductible business costs from taxable business income.
Loss from business activities

Enter the allowable loss in this line. This is normally the negative difference that results from subtracting Tax-deductible business costs (section 7, field 10) from Taxable business income (section 6, line 10).

However, if your expenses include donations or group subsidy payments you have made (Amounts not taken into consideration), you must reduce the loss in this field by their amount.
Amounts not taken into consideration 

Payments of intra-group subsidy, reserves on the balance sheet for residential dwellings (asuintalovaraus), and donations are amounts not taken into consideration (under § 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

9 Assets

Enter all assets as amounts equalling their undepreciated, residual acquisition cost unless the guidance instructs you to do otherwise. Calculation of Net Worth may contain asset values that deviate from those on your company's balance sheet

Fixed assets

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 the fixed assets that are subject to wear and tear include

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

Complete Form 62 to itemize the depreciation expenses relating to your fixed assets including any changes in the differences between planned and book depreciation.

Land, securities and similar fixed assets are regarded as not being subject to wear and tear.
Real estate, buildings and structures (Complete Form 18 to itemize them) 

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

Complete Form 18.

The value should either be the undepreciated residual acquisition cost (= line 7 on Form 62, undepreciated balance at end of year) or a comparison value (= tax value), whichever is higher.

Comparisons must be made separately for each specific unit of real estate.

The concept of real estate includes both the building and the land on which it is located.

Additionally, under § 6, Income Tax Act, buildings, structures etc. located on land that belongs to another owner are also regarded as real estate, provided that they are transferable to a third party without the need to obtain consent from the owner of the land, so that the right of possession over the land also is transferable.

If the end date of company accounting year falls in 1 January – 30 September 2017, you must use the confirmed 2016 tax value of the real estate because the 2017 is not yet confirmed.

If the end date of company accounting year falls in 1 October – 31 December 2017, you must use the confirmed 2017 tax value of the real estate.

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 utilized exclusively for research and development of the business.

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

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

The comparison value of water and fallow lands is  0.
Machinery and equipment

Enter the total the undepreciated residual acquisition cost of the machinery and equipment.

Examples include

  • Machines
  • Trucks, lorries, vans
  • Passenger cars
  • Transport 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.

Fixed and non-current assets, total Add up all the entries under the sub-heading.

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.

Enter current assets as amounts equalling their acquisition cost adjusted by a reduction in value as provided in § 28, subsection 1, Business Tax Act if necessary.
Current assets, total Add up all the entries under this sub-heading.

Financial assets

Financial assets include cash and banks, receivables in the form of bank account balances, bills of exchange etc. (§ 9, Business Tax Act).

Additionally, accounts receivable and cash reserves in the form of securities are also regarded as financial assets.

Enter financial assets as amounts equalling their nominal values when a receivable is in question, and use acquisition cost values for other financial assets. Both types of assets must first be adjusted for reduction in value as provided in § 17, 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, Section 3, Accounting Act).
Financial assets, total Add up all the entries under this sub-heading.

Other long-term investments (Income Tax Act, TVL)

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

Enter all assets as amounts equalling their undepreciated, residual acquisition cost unless the guidance instructs you to do otherwise.
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 tenant.

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

If the end date of company accounting year falls in 1 January – 30 September 2017, you must use the confirmed 2016 tax value of the real estate.
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
Amounts owed to companies within the same group

Enter the short-term and long-term debts your company owes to other group companies. However, do not enter any accounts payable balances here.

Examples of these debts:

  • Advance payments received from group companies
  • Debt from group in the form of bills of exchange
  • Other intra-group debt
  • Accrued items, when the counterpart is a company belonging to the same group.

For a definition of group companies, see Chapter 1, Section 6, Accounting Act on parent and subsidiary entities within a group undertaking.

If the group of companies has applied a system of distributing dividends in advance, and your company distributes them, you must not include any unpaid dividends in your debts. Instead, they must be subtracted from the net worth of the company in the same way as any other dividends that are going to be paid out.
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 here.

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

Sum total of the entries that represent debt.

Please note that the amount entered here is not necessarily the sum of Current liabilities total and Non-current liabilities total because they are from company accounting books but the amount entered here is based on Tax Accounting.

11 Capital, Equity and Reserves

Enter the amounts as they are in your accounting books.

Restricted equity

Share capital / Cooperative capital  The registered capital of the corporate entity, i.e. its share capital, cooperative capital etc. depending on the type of the entity. 
Other restricted equity   Under Accounting Act, some reserves of the balance sheet are restricted and cannot be used freely  (for more information, see §8, subsection 1, Companies Act).

Unrestricted equity

Reserve fund for invested equity  The reserve in the balance sheet within the meaning of §8, subsection 2, Companies Act, intended for amounts invested. 
Other reserves  Other similar reserves pertaining to 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 profits of 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 amounts 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 of 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 amounts affecting it. The sum total must be the same as the loss of the year that closes, as recorded in your books.

12 Auditor's report

Have the auditors given their report?

If your company has the obligation to have its financial statements audited, you must enclose Auditor's Report.

  • Tick “Yes” if the auditor has finished their audit work before you file the tax return.
  • Tick “No” if audit is not completed yet, but is going to be completed later.

If the audit is not completed by the due date of your tax return and Auditor's Report is not yet available, you must deliver it to the Tax Administration later: the deadline for such delivery is one month after the date of completion of the audit.

If you e-file, you can log on again later to add any further documentation.

If you opt for paper filing, you must staple Form 63 to the Auditor's Report and and send it to:

Finnish Tax Administration 
OCR Service — Corporate taxpayers' tax return forms
PO Box 200
00052 VERO.

Tick “No auditor appointed” if the corporate entity refrained from appointing an auditor under the provisions of the amended Act (Auditing Act 1141/2015) that concern small businesses.

Corporate entities are allowed to not appoint an auditor if only one (maximally one) of the following preconditions is fulfilled in the latest and the preceding accounting period: 

  • Balance Sheet assets/liabilities exceed €100,000.
  • Net sales exceed €200,000.
  • Average number of people on the payroll is 3 or more.

Nevertheless, it is mandatory for the company/other entity to appoint an auditor if its Charter, Articles of Association etc. contain provisions to that effect.

Some additional legal provisions are found in chapter 2 § 2.4, Auditing Act concerning certain industries and spheres of influence.

13 Changes of the shareholding, information on past losses 

Always complete this section if more than half of the shares have changed hands in the course of a single taxable year, or step-by-step in the course of several years. Facts about share transfers have an effect on the deduction rights of past losses.

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.

Impact of shareholder changes (ownership changes)

Corporate taxpayers lose their entitlement to tax deductions for past-years' losses if more than half of its shares, directly or indirectly, have changed hands and been transferred to a new owner during the year when the loss was made or during a later year, and the reason for the change was not an inheritance or a will (i.e. there was a sale transaction or an exchange transaction). 

However, a corporate taxpayer may ask the Tax Administration to give a special permission (under § 122, Income Tax Act) for the deductions to stay in force.

Indirect changes in ownership i.e. differences in the proportions of shareholding are taken into consideration if a shareholder is incorporated and has at least a 20-percent holding, and the majority of the shares of this incorporated shareholder is transferred to a new owner. In such cases, all the shares are treated as having been transferred to a new owner.

Example: X Oy owns all of the shares in Z Oy. When more than half of X Oy's shares go over to a new owner, all the shares of Z Oy are treated as having been transferred to a new owner.

Changes in ownership of a stock-exchange-listed company, with its shares being publicly traded, do not prevent the deductions discussed here.

Changes of the shareholding, information on past losses 

Enter the tax year of the change if more than half of corporate stock has been transferred to new owners in the course of the past ten tax years.

Similarly, enter the year even if this has occurred progressively: the change in ownership may have happened during a period spanning several years, or there may have been indirect changes of ownership 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, write out a separate enclosure to explain the changes of ownership and the dates when they occurred and tick the "14 List of enclosures—Other" box.

Example: Corporate stock consists of 100 shares, held by one single individual. She sells 50 shares to someone in 2015, and one share to someone in 2016.  This means that more than half of the stock changed hands, taking into consideration both years 2015 and 2016.  The company made losses for the 2012 to 2016 tax years.

The company must enter 2015 as the tax year when the change took place, and write out a separate enclosure, in order to explain the changes of ownership and the dates when they occurred.

The company is in this case not allowed to deduct its losses for 2012 to 2015 from its 2017 profits. In 2016, a year when the company also made a loss, just one share was transferred to a new owner. Consequently, the company is entitled to deduct its 2016 loss from its 2017 profits.

There may be a change in ownership relations although the owners stay the same: for example, the company issues a set of new shares but only some of the old shareholders sign up to by them. The proportions of share ownership among the shareholders is no longer the same.

14 List of enclosures 

 

Tick the boxes as appropriate.

The Other Enclosures category includes free-form documentation – for example, and explanation of the breakdown of profit generation between Åland Islands and Mainland Finland.

Please avoid submitting any free-form enclosures that are not discussed in this guidance unless they are necessary due to specific facts and circumstances.

If you file Form 6B on paper, don't forget to authorize it with your signature and write down the date.

List of enclosure forms and their instructions: