Limited liability company – remember these when filing your tax return

News, 4/22/2020

Many limited liability companies are due to file their tax returns soon. Limited liability companies whose accounting period ends in December normally have to file their tax return by 30 April. Due to the coronavirus situation, the Tax Administration has given companies one month of extra time to file their return. The new deadline is 31 May, but since that date is a Sunday, the tax return can still be filed on 1 June. Read more about the extra time for filing corporate tax returns

You can see the new filling deadline date in MyTax. The Tax Administration wishes that all companies and organisations who can file their tax return by the normal filing deadline would do so.

When must a tax return be filed?

If the company had taxable income, assets, debt or other transactions during the tax year that affect tax assessment, the company must file an income tax return. The company must file the return on its own initiative before the filing deadline without being requested to do so by the Tax Administration. The tax return must also be filed even when the company has not had any business activities if the company was founded or declared bankrupt during the tax year.

If the tax return or related information is filed late, the Tax Administration may impose a late-filing penalty or a punitive tax increase. If you need more time for filing, you must request it before the filing deadline has passed. Read more about requesting more time for filing (available in Finnish and Swedish, link to Finnish).

File the tax return and its enclosures electronically

The tax return and its enclosures must be filed electronically. You can submit the return in MyTax, upload a file generated by your accounting software on Ilmoitin.fi, or use commercial Tyvi services. Use e-filing for all tax return forms and attachments, such as financial statements.

The Tax Administration will send all financial statements that you have submitted electronically and marked with the appropriate attachment type to the Trade Register automatically. However, you can choose to submit your company’s financial statement to be used only at the Tax Administration and not sent along to the Trade Register. You can also submit the financial statements electronically after the tax return has been filed.

MyTax will instruct you in how to fill in the tax return form and what attachments to include. The tax return in MyTax contains pre-completed information that you have filed previously as well as notes on new information that you must fill in. MyTax will calculate the company’s profits and losses based on the information you enter.

Report information on any additional dividend distribution primarily in MyTax. You can report these details on the tax return form 6B under Financial statements and dividend distribution.

When does the tax assessment of a limited liability company end?

All taxpayers have their own end date for their tax assessment. The tax assessment end date is stated on the tax decision. For a limited liability company, the end date is always within 10 months from the end of the accounting period’s final calendar month. Due to the coronavirus situation, the Tax Administration has given companies one month of extra time to file their return. The new filing deadline will be displayed in MyTax this week.

If the company has back taxes, their due date is the 3rd of the second calendar month following the end date of tax assessment. Back taxes cannot be paid before tax assessment has ended, because otherwise the payment cannot be allocated correctly. 

What if the auditor’s report or the General Meeting minutes are not yet available when the return must be filed?

If you do not have access to the auditor’s report or the minutes of the Annual General Meeting at the time of filing, enclose the company’s financial statement with the tax return. Submit the auditor’s report and an extract from the minutes of the Annual General Meeting later.

If the financial statement has not been confirmed, you can submit it only to the Tax Administration by selecting “Financial statements, for the Tax Administration only” as the attachment type. If you select “Financial statements” as the attachment type, the statement is also sent to the Trade Register.

Report changes in share capital after the accounting period

Remember to include in the tax return any changes to the company’s share capital that have taken place after the end of the accounting period. These include changes to the share capital, the issuing of shares, or the quantity of shares.

The “Quantity of own shares held by the company at the end of the accounting period” field on the tax return should only indicate how many company shares were in the company’s own possession at the end of the 2019 accounting period. Please note that this field is not for the total quantity of shares issued by the company. If you enter the total quantity of all shares in this field, the mathematical value of shares may be calculated incorrectly.

Changes to the assessment of corporate sources of income will only take effect in tax year 2020

Changes were made to tax legislation on 1 January 2020 regarding the division between different sources of income. These changes will first take effect in the assessment of the tax year 2020. Read more about changes to the taxation of different sources of income.

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