Payment of taxes – tax card and prepayment

When you set up a new business, you need to estimate the income and expenses of the business, as well as any operating profit. You have to pay taxes in advance based on the estimate you have provided.

If you are a self-employed individual operating under a trade name ("toiminimi") and run a small-scale business, your earned and capital income from business can be taken into account on your tax card. In that case, change your tax card information in the MyTax e-service.

Otherwise, you should request prepayments, and we will send you a prepayment decision and bank transfer forms. Remember to compare how the estimate matches your actual income and expenses during the year. If it seems your income will be lower or higher than the estimate, you should request changes to your prepayments.

In addition to the income tax that you pay in advance, you must pay value-added tax if you are VAT liable, and employer contributions if you pay wages.

How to report information for prepayments

Request prepayments in MyTax.

The amount of prepayments imposed on a self-employed individual depends not only on the taxable profit from business activities, but also on the individual's entire income during the tax year, including wage income and any start-up grant. If your business is usually seasonal (for instance, if you run a summer kiosk or work as a skiing instructor), you can request prepayments only for the months when you are earning income.

Request prepayments in MyTax.

The prepayment amount for partners in general or limited partnerships depends not only on business income, but also on all other income, such as wages and start-up grants.

Partners must make prepayments on their profit share from the general or limited partnership.

Request prepayments in MyTax.

You can also request prepayments through the Ilmoitin.fi and Tyvi services. Read more about electronic applications (in Finnish and Swedish only).

Limited-liability companies and cooperatives pay 20% tax on their taxable income.

Non-profit associations and foundations are liable to pay tax on their business income. The tax rate on business income is 20%.

If an association or foundation does not operate on a non-profit basis, it must pay 20% tax on all its taxable income.

How often is the prepayment made?

The Tax Administration notifies you of the number of instalments and their amount based on the taxable income you have reported for the first accounting period. The general due date for prepayments is the 23rd of each month.

More information on instalments and amounts of prepayments

Read more about tax prepayment