Tax prepayment – companies and organisations

The amount of the current year's total prepayments is based on an estimate of taxable profits. If expenses grow higher or do not match the estimate you had made, we recommend that you ask for changes to your prepayments.

Request prepayment or changes to prepayments in MyTax

How to request prepayment or additional prepayment in MyTax

Note:

Now you have more time to request prepayment or changes to the amounts to be prepaid. Instead of until the end of the year, you can now submit your request until the time when the Tax Administration has completed your tax assessment.

What are prepayments?

Companies and corporations must usually make tax prepayments on their profit. The company’s profit is the difference between its income and expenses. For instance, a limited liability company can make tax deductions for the wages paid to its employees. Expenses like this decrease the amount of income that is subject to prepayments.

What kind of income is taxed by way of prepayments?

For corporate entities, profits are subject to prepayments. Profits come from the activities pursued. These include:

  • Business operations
  • Agriculture
  • Other activities for the production of income: typically, renting out assets/property, or selling assets/property (which results in capital gains)

How does the prepayment register affect prepayments?

If a company is registered in the prepayment register, it takes care of its own prepayments. This means that parties making payments to the company do not need to withhold taxes from those payments.

Note: A new company must request prepayments separately even if it is in the prepayment register.

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