Refunding taxes – businesses and corporations
This guidance is for corporate taxpayers and the self-employed.
Correct bank account number ensures a fast refund
Tax refunds are primarly paid into a bank account. You can do this online or by filling in a form and handling it in at a tax office.
- Online Bank Account Notice (www.vero.fi/mytax)
Refund payment date, by taxpayer
Date when refunds are transferred to bank accounts is 11 Dec 2018.
For the period from 1 Feb to 31 Oct 2018, refunds earn interest at the rate of 0.5% per annum.
The end date of assessment is 10 months after the last day of the calendar month when the corporate taxpayer's accounting period ended. Refunds are paid on the 7th of the second calendar month that comes after the end date of assessment. If that date falls on a day when banks are closed, the refund is transferred to the taxpayer's account on the next banking day.
Example: The corporate accounting year ends 31 Dec 2017. Assessment process ends on 31 Oct 2018, and the date of refund payment is 7 Dec 2018. The interest on refunds (rate: 0.5%) starts accruing on the day after the deadline of tax return filing and ends on the final day of the last calendar month before payment.
Interest on refunds
Refunds are credited with interest. The rate of interest is the official Reference Rate of the Bank of Finland reduced by 2 percentage points. However, it cannot be less than 0.5%. It is reviewed every year. In 2018, the rate of interest is 0.5%.
Self-assessed taxes are credited with interest. The rate is the official Reference Rate of the Bank of Finland reduced by 2 percentage points. However, it cannot be less than 0.5%. In 2018 it is 0.5%. There is no difference between the rate paid on a refund and the rate paid on a self-assessed tax.
Why did my refund not arrive to the bank?
If you have not given us your account number, we pay you the refund through a paper-printed payment order via the OP Bank. Note: You must now pay a service charge for cashing the payment order. The OP Bank network debits an amount according to the bank's price list of cashier services. Because of the bank charge, the Tax Administration does not pay tax refunds under €15 as payment orders unless the taxpayer requests it.
We will send you a letter informing you of the payment order using your address in our records. Payment orders cannot be sent to a taxpayer who does not have an address in Finland. After receiving the letter, you can cash the refund at a branch of OP Group (a bank office with cashier services) in Finland within 28 days of the date printed on it. For more instructions, refer to the contents of the letter or payment order.
A refund paid to your bank account will reach you sooner than a refund via a payment order.
A tax refund is payable if it amounts to at least 5 euros. For self-assessed taxes, no refund is made if the refundable sum stays below 20 euros.
If the recipient of a refund has unpaid taxes, the Tax Administration will offset the refund; in other words, use it to settle the unpaid taxes. We can also use the refund for settling any third-party tax debts the recipient may be liable for. If such an offset is decided upon, we always notify both the taxpayer who is the original recipient of the refund and the party who receives the offset.
After November 2017, it has been possible to use the refunds for limited companies and other corporations to cover other tax liabilities. Refunds for corporations can be used to cover due payments as soon as taxation has been completed.
In some circumstances, the Enforcement Agency may impose a distraint on a refund. If the Agency decides to do so, they notify the taxpayer.
If you give an account number to the Tax Administration that belongs to a loan company, it will stay on our files until you send us a new bank account notice informing us of your own account number.
The Tax Administration's data system allows only one bank account number per taxpayer.
Information on other types of refunds
The Tax Administration also pays out refunds to those whose tax assessment has changed because of an appeal process or readjustment. Changes may have been made on the taxpayer's request, or because of an internal readjustment made by the tax office. We inform the taxpayer by letter, indicating the amount to be refunded. These refunds are usually paid within a week of the date of such a letter. We use the bank account number on file.