Changes to tax payments, refunds and recovery
A number of changes were introduced to tax payments, refunds and recovery in November 2017. The income tax payments of corporations and joint administrations, for example, have changed, and supplementary corporate prepayments have been abolished. Corporations are able to pay their income taxes online via MyTax. More details will be added to tax summaries.
Changes to corporate income tax payments
The due date for corporations’ prepayments will still be the 23rd of the month. If the 23rd falls on a weekend or a public holiday, the due date will be the following working day.
Instalment-specific references will no longer be used for corporations’ prepayments and back taxes as of November 2017, and instead all prepayments and back taxes will be paid using tax-specific references. Customers will need to use the same reference number for all their income tax payments. However, payments can still be made using the details that were in use for bank transfers before November 2017, i.e. a reference number and a bank account number.
Customers will no longer be able to choose which income tax instalments they wish to pay, and instead payments will be used towards income taxes according to priority, as specified in the new regulations:
- The taxes that will become time-barred first are paid first, i.e. payments are used towards income taxes in an order based on their time limits.
- If several taxes have the same time limit, the order is based on their due dates: The taxes that will fall due first are paid first.
The bank account number for corporate income tax has changed. Customers can check their new income tax reference number and the bank account number from MyTax or from their tax assessment. However, payments can still be made using the details that were in use before November 2017, i.e. a reference number and a bank account number.
Corporations are able to pay their income taxes online via MyTax. Payment details do not need to be entered separately for online payments, as they are already in the payment template.
Corporate income tax assessments sent in or after November 2017 will no longer be accompanied by giro slips. All the information needed for making payments is given under “Payment information” in the assessment. Details of due taxes and payment information will also be available in MyTax as of November.
Additional prepayments have replaced supplementary prepayments
The current system of supplementary corporate prepayments were abolished in November 2017. Supplementary prepayments of individuals and other taxpayers will be abolished in November 2018. Supplementary prepayments have been replaced by additional prepayments. Customers need to apply for prepayment supplements from the Tax Administration. Read more about applying for prepayment supplements: New prepayment procedure to replace supplementary prepayments
Supplementary prepayments can still be made until the changes enter into force and prepayment supplements are introduced. The last date on which supplementary prepayments can be made will be
- 31 October 2017 for corporations and joint administrations (prepayment supplements will be introduced on 1 November 2017)
- 31 October 2018 for individuals and other taxpayers (prepayment supplements will be introduced on 1 November 2018).
Any supplementary prepayments made by corporations using old payment details on or after 1 November 2017 will be used towards their income taxes.
As of November 2017, all corporations and joint administrations will have one month from the end of the tax year to supplement their prepayments without incurring discounted late payment interest (formerly corporation interest and interest on back taxes). Read more about interest rates: Changes to the calculation of interest on the income taxes of corporations and joint administrations
No tax refunds for non-filers
Tax refunds will still be paid as before, i.e. on the 7th of the second calendar month after the closing date for tax assessment. For example, if tax assessment closes in October, the refund will be paid on 7 December.
However, the Tax Administration can use the tax refund towards overdue taxes as of the closing date of tax assessment.
Tax refunds cannot be paid to taxpayers who have failed to declare or whose tax returns are incomplete. Both self-assessed taxes and income tax are taken into account: If any issues are found in either tax return, the Tax Administration cannot issue a refund for either tax. Issues found in tax returns appear in MyTax the day after the deadline for filing.
More detailed summaries
As of November, corporations’ prepayments and back taxes as well as tax refunds will be shown in the same summary that is currently used for self-assessed taxes. The summaries appear in MyTax at the beginning of the following month. Corporations’ prepayments and back taxes as well as tax refunds will be included in the summaries for the first time at the beginning of December.
The summaries also act as reminders if a tax bill remains unpaid after the due date. Reminders will no longer be sent separately. The last reminders for overdue corporate income tax were sent in September.
Requesting proof of tax debt and payment plans via MyTax
As of November, proof of tax payments or debt can be requested via MyTax.
The requested proof will appear in MyTax, from where it can be printed out. A paper copy is also still sent by post.
The electronic proof of tax debt request at Vero.fi (in Finnish) will be removed from the site later.
Requests for payment plans are made via MyTax. MyTax can be used to request a payment plan for self-assessed taxes, corporate income tax, inheritance tax and gift tax. The electronic payment plan request at vero.fi can still be used for other tax types.