Corporate restructuring and bankruptcy

Debtors that have financial difficulties may apply for corporate restructuring.

The purpose of restructuring may be to save the healthy part of the enterprise and to help make the necessary arrangements for the repayment of its debts. The decision to start a corporate restructuring process is made by a court of law.

Filing the self-assessed tax return when the company enters restructuring

Corporate taxpayers use self-assessed tax returns for reporting VAT, payroll withholding and the employer's health insurance contributions. After the return is submitted, the amounts are recorded and shown in MyTax where the taxpayers also can look up the sum they must pay for the current tax period.

When proceedings of corporate restructuring are undertaken, the debt balance subject to restructuring is determined as of the date when the application has become pending.  However, when the Tax Administration is among the creditors, we apply the principle of not splitting any tax periods that are in force. As a result, the debtor does not have to submit a self-assessed tax return that would be adjusted for the date when the application had become pending by splitting the period. Instead, the debtor should file a similar return as is filed for other tax periods.  The tax to be paid and reported on the self-assessed tax return is included fully in the debt balance for the period when the application became pending (unless the application date is the first day of a calendar month).

Debtors can be put into bankcruptcy

If a debtor has an unpaid tax debt it may cause it to be declared bankrupt; the petition for bankruptcy may be filed to a Court by the debtor himself, or by the Tax Administration in the role of a debtor.

For more information on bankruptcy proceedings, visit