Incomes Register's penalty fee
Year 2019 is a transition period during which no penalty fees are, as a rule, imposed. Data users can impose penalty fees, however, if employer obligations are neglected. If the act of neglecting the reporting obligation shows obvious disregard, penalty fees may also be imposed during the 2019 transition period.
It is important that the information reported to the Incomes Register is correct and submitted on time. This ensures that the insurance contributions related to the payments can be collected and transferred to the appropriate tax recipients promptly. If the reporting obligation is neglected, a penalty fee is imposed. The purpose of the penalty fee is to encourage reporting of correct information at the right time.
A penalty fee will only be imposed on mandatory data reported late to the Incomes Register by an employer or other payer. The penalty fee will be imposed by the Finnish Tax Administration on the basis of information received from the Incomes Register. Penalty fees will not be imposed on individuals or estates, unless the late report concerns payments related to business activity, agriculture or forestry.
Although the information must, as a rule, be submitted within five calendar day of the payment date, the penalty fee will not be included in the same deadline. The Finnish Tax Administration will impose a penalty fee if mandatory data on payments is reported later than on the eighth day of the calendar month following the payment date.
Penalty fees for Incomes Register reports will be calculated from daily penalty fees and fees determined by the payment amount.
- A fee of EUR 3 per day will be levied for the first late report submitted in each calendar month, until the information has been reported to the Incomes Register.
- The daily penalty fee will be levied for a maximum of 45 days, i.e. the maximum fee will be EUR 135.
- However, no penalty fee will be levied for information submitted on time and corrected within 45 days of the deadline.
More than 45 days
- The penalty fee for reports submitted more than 45 days late will be EUR 135. A sum equalling 1 percent of the amount of the taxable payment reported late or amount of earned income used as a basis for calculating the pension, whichever is greater.
- If previously reported information is corrected more than 45 days after the deadline, a penalty fee of one percent of the amount of the taxable payment or amount of earned income used as a basis for calculating the pension, whichever is greater. No penalty fee will be imposed, however, if the amount of the taxable payment or amount of earned income used as a basis for calculating the pension will not increase owing to the correction.
The maximum penalty fee will be EUR 15,135. The maximum is reached if €1,500,000 of a taxable payment or earnings on which a pension is based is reported for a calendar month more than 45 days late.
When data is not reported to the Incomes Register at all, or the data is incomplete, and the payer does not correct the neglect of its own volition before the taxes and contributions are levied, no penalty fee will be issued. In such cases, possible sanctions will include a tax increase or negligence penalty.