How to make a prepayment
This guidance concerns individual and corporate taxpayers alike.
If the Tax Administration has imposed prepayments on your income, you see the decision on this in MyTax, and a decision letter is also sent to you by post. This documentation contains the necessary details for payment, including a specification of due dates and instalments.
You can make the prepayment with the following methods of payment:
- In MyTax as an electronically transmitted payment. All the payment details are pre-filled in MyTax so you don’t have to type them. When you send the Tax Administration a payment in MyTax, the amount is debited from your bank account the same day even if the actual due date is later.
- In your online bank – remember to use the correct reference number.
- In the form of an e-invoice, or as a direct payment, if you have agreed with your bank on these methods of payment.
Frequently asked questions about prepayments
If the tax year is not over yet, and you notice you haven’t paid enough prepayments, you can request a change to your prepayment in MyTax.
If the tax year is over, and you find out that the prepayments you made were not enough, you should submit a request for an additional prepayment.
If you have not paid enough or have not made an additional prepayment, you must pay back taxes and late-payment interest later to make up the difference.
Before the date when the Tax Administration has completed your tax assessment
If you notice that you have paid too much in prepayments, you should request a change of the total prepayments for the year, either in MyTax or by filling out a paper form.
After end of tax assessment
If it turns out that your prepayments have been too high, you will get a refund.
However, if you have any other taxes that are overdue, the Tax Administration will use the refundable balance to cover them. Read more on how refunds may be used as payment for unpaid taxes.
The same reference number stays in force for all your prepayment instalments. Prepayments, an additional prepayment, and any payments of back taxes are covered by the reference number for income taxes. All individual taxpayers, business owners and self-employed individuals, partners of general partnerships, partners of limited partnerships, and agricultural operators must use the reference number for income tax when making prepayments.
Check your prepayments documentation, on paper or in MyTax, to look up the valid numbers.
The format of the reference number is ‘RF’. Enter the full RF reference in the payment information, including the letters RF. If you are unable to use the entire RF reference, you can leave out the letters RF and the first two numbers. Sometimes you may be unable to enter the reference number (e.g. if you are using a foreign bank’s e-service). In this case, you can enter it in the “message” field.
Prepayments, an additional prepayment, and any payments of back taxes are covered by the reference number for income taxes. The Tax Administration applies the amounts that arrive with the income-tax reference number to prepayments, to back taxes, and to additional prepayments in the order of their due dates, oldest first. If you already paid the installments that had fallen due, the Tax Administration uses your payment on installments that have not yet fallen due.
If you pay in more than what has been imposed on you as income tax, the Tax Administration will apply the excess on other taxes that are overdue, including any amounts for which you are accountable on behalf of a third party. In some cases, amounts that would otherwise be refunded may also be applied to an unpaid debt that has been transferred to the enforcement agency for enforced recovery. Any remaining sums are then refunded back to your bank account, using the bank account number that the Tax Administration has on file.
Example: On 23 July, a taxpayer pays €1,500 using the reference number for income tax. She has been issued a decision on prepayments requiring her to pay €1,000 every month. The Tax Administration applies €1,000 of the paid-in amount to the July instalment that has already fallen due, and €500 to the August instalment that has not yet fallen due.
If the Tax Administration has already applied the amount to some other tax, you must pay the outstanding prepayment plus its late-payment interest again. Use the income-tax reference number. If you can see your payment in MyTax and it has not yet been applied to any tax, you can submit an application for refund. If you have taxes overdue, the Tax Administration covers them first with the amount that would otherwise be refunded to you, and if there is some money remaining, you receive a refund.
The amount of your prepayments is based on an estimate of taxable profits for the year. If actual income or actual expenses are different from the estimated income and expenses, we recommend that you change your prepayments. You can make the changes in MyTax until tax assessment is completed. You can look up the end date for tax assessment on your tax decision.
For individual taxpayers, the Tax Administration completes assessment at a date that falls between May and October.
In the case of a corporate entity, the Tax Administration completes assessment before 10 months have elapsed after the end of the final calendar month of the accounting year of the corporate entity.
Guidance for using MyTax
Individuals: How to request adjustment of prepayment in MyTax
You can submit an application for refund in order to have the balance transferred back to you as a refund. This can be done in circumstances where there is nothing preventing the refunding – i.e. you have filed your tax returns on time, etc. If you have taxes overdue, the Tax Administration covers them first with the amount that would otherwise be refunded to you, and if there is some money remaining, you receive a refund.