Payment of taxes – tax card and prepayment
When you set up a new business, you need to estimate the income from the business, expenses and potential business earnings. You pay taxes in advance based on the estimate provided.
If you are an entrepreneur with a business name, that is, a business operator and a self-employed person and your business is small-scale, the income and expenses of business operations can be taken into account on your earned income tax card. In such a case, change your tax card information in the TaxCard Online service.
In other cases, you must apply for prepayment and we will send you a prepayment decision and payment instructions. Be sure to keep track of your estimate during the year. If the income seems to be lower or higher than your estimate, apply for an amendment of prepayment.
In addition to the so-called personal income tax paid in advance, you must pay value-added tax if you are VAT liable and employer contributions if you pay wages.
Report information for prepayment
Set up prepayments using the Tax Card Online service. In addition to the taxable profit of the business, the amount of advance tax of a business operator and self-employed person is determined on the basis of all other income from the tax year, such as wage income and start-up grants. If your business is regularly seasonal (e.g. a summer kiosk or skiing lessons), you may request prepayment tax for the months in which you earn your income.
Set up prepayments using the Tax Card Online service.
Income other than income from business operations, such as wages and start-up grants, affect the amount of prepayment of your company.
Partners must pay advance tax on the share of income they receive on the basis of the result of the general partnership or limited partnership.
Apply for prepayment online in MyTax.
An application can also be submitted via Ilmoitin.fi or Tyvi reporting services. Read more information on filing online. (in Finnish)
Limited liability companies and cooperatives pay 20% income tax on their taxable income.
A non-profit association or foundation is liable to pay tax for any business income it receives. The tax rate for business income is 20%.
If the association or foundation is not a non-profit one, it is liable to pay 20% tax on all taxable income.
How often is the prepayment made?
The Tax Administration indicates the number of instalments and their amount on the basis of the taxable income you have reported for the first financial year. The general due date for prepayment is the 23rd of each month.
More information on the size and number of prepayment instalments:
- business operators and self-employed persons, partners in general partnerships and limited partnerships
- limited liability companies, cooperatives, associations and foundations (in Finnish)