Instructions for filling out the e-form – Annual information return, payments of interest, calling for withholding of tax at source 2018
This guidance concerns the VSKTVYSL information return. Electronic filing is required for the 2017 reporting year and later years because the paper-printed form is no longer available.
Filers must use this information return format for reporting their payments of interest on bank account deposits, interest on personnel service office deposits ('employees' bank', huoltokonttori in Finnish) interest on the balances of client accounts in payment institutions and the interest on bonds and debentures.
Accordingly, this information return format is used for reporting the paid interest on domestic bank deposits received from the public and also for reporting the paid interest on bonds and debentures issued for the public for subscription. Payments of index compensation (indeksihyvitys in Finnish) must also be reported. However, you are not expected to file this information return if you have paid out interest that is tax-exempt under the applicable definitions of law. Similarly, if a transfer of deposits, bonds or debentures has been made and you have paid interest in connection with such transfers you are not expected to file this information return.
If you have paid interest to nonresident beneficiaries you must use another information return format (either VSRAERIE of Form 7809e).
Write the amounts in euros and round them down to the nearest ten cents.
How to file
The deadline for submittal is 15 February the year after the reporting calendar year. For the 2018 taxable year, the deadline is 15 February 2019.
Making corrections; using the new identifier of the filing
For more information on how to make corrections to annual information returns after you submitted them, see "Making corrections".
A new process is implemented for entering corrections, involving the submittal of a new return. The information return submitted last will always replace the previous one. There can only be one return with the same identifier. If there is a mistake in the information return, you must invalidate it and send us a replacement.
The identity details in this annual information return are:
- File identifier
- Type of interest
- Year of payment
- Payor’s ID
- The ISIN code of the issued bond or debenture
- The official name of the issued bond or debenture and
- Account operator’s Business ID
How to compute the amounts to be withheld
The calculation rule for the tax at source on interest income is that each amount of interest paid must be treated separately and the amounts must be rounded down to the nearest ten cents.
If you pay out interest in non-euro currencies, you must perform the computations after you have converted the paid amounts into euros using the European Central Bank rate of the date of payment.
Type of interest
8A = interest on bank deposit balances
8B = interest on bonds/debentures
8C = Interest on the balances of deposits in employee banks (personnel service offices), of client accounts in payment institutions, and interest paid by the Finnish branch offices of foreign payment institutions.
Thus the '8A' type includes banks and cooperative savings offices accepting deposits from the public, the '8B' type includes bonds and debentures and '8C' includes employee banks, payment institutions and the Finnish branches of foreign payment institutions. The lines of the annual information return must specify the interest on deposits bank-by-bank, the interest on bonds and debentures separately for each issued bond or debenture, the interest on deposits in employee banks separately for each employer and similarly, the interest on the balances on client account in payment institutions separately for each payment institution involved.
Total paid interest
Write the total amount of interest paid out and taxable at source. Typically the beneficiaries of such interest are tax-resident individuals in Finland – i. e. physical persons fully liable to tax – or estates of deceased persons in Finland. Sometimes the beneficiary is a corporate entity or a consortium. As the payor of interest you are under the obligation to withhold tax at source if the corporate entity has not provided adequate explanation of its tax status to you. If you have paid interest to a corporate entity in such situations report the paid amounts here.
Total amount of tax at source on interest
Write the total amount of tax withheld at source on the paid interest. If the Tax Administration has expressly demanded this you must also list the names, domicile districts and amounts of paid interest of the resident beneficiaries of whom no amounts of tax has been withheld at source.
The party paying interest
Enter the Business ID of the payor of interest.
Examples of parties paying interest are depositary banks, Finnish branches of foreign credit institutions, payment institutions, Finnish branches of foreign payment institutions, employee banks set up by employers to give financial services to their personnel, and issuers of bonds and debentures.
Payors of interest must be categorized as follows:
01 Banks accepting deposits from the public
02 Employee banks (personnel service)
03 Finnish branch offices of foreign credit institutions
04 State of Finland
05 Domestic payment institutions
06 Other issuers of bonds and debentures
07 Finnish branch offices of foreign payment institutions.
The person to contact
If someone other than the payor files the information – such as a bank that acts as an intermediary and pays the interest on behalf of the issuer of the bonds – write the names of both the bank and the person to contact.
There is no need to send a copy of the terms, conditions and rules applied on issued bonds, debentures or deposit accounts to the Tax Administration as of the 2017 reporting year.