Households purchase services from companies

The Incomes Register will be deployed on 1 January 2019. Earnings payment data can be reported no earlier than on 1 January 2019.

When households purchase work, such as cleaning, as a service from an entrepreneur or an enterprise and pay a non-wage compensation for work based on an invoice, the relationship in question is a commission relationship. When work is based on a commission relationship, you must check whether the company or self-employed private person is registered in the prepayment register. 

You can check whether a company is registered in the prepayment register in the following ways:

  • Use the business information system (ytj.fi). You can search for information by either the company name or its business ID. The service is free of charge.
  • Call the Tax Administration’s Tax Service at 029 497 004 (Self-employed person’s income taxation telephone charge: local call charge/mobile phone call charge).

The company is registered in the prepayment register

If the company is registered in the prepayment register, the non-wage compensation for work need not be reported to the Incomes Register.

For example, if you regularly pay non-wage compensation for work for home cleaning or children’s music lessons to a company or entrepreneur registered in the prepayment register, you do not need to report information to the Incomes Register. You only need to pay the invoice for the work done.

The company is not registered in the prepayment register

If the company or entrepreneur is not registered in the prepayment register, you must always report work-related payments to the Incomes Register.

There is no monetary minimum threshold for information reported to the Incomes Register. All non-wage compensation for work paid to a company not registered in the prepayment register must be reported.

However, the amount of non-wage compensation for work affects other responsibilities of the household. The euro limits below are listed per payer and they apply to private individuals and death estates.

If the company or entrepreneur you are using is not registered in the prepayment register and the compensation you pay for work does not exceed EUR 1,500 per year:

  • Report the non-wage compensation for work paid and other possible payments, such as reimbursements of expenses. No minimum sum in euros applies. The information is reported to the Incomes Register on an earnings payment report. 
    • Withholding tax is not necessary because the amount of non-wage compensation for work does not exceed EUR 1,500.
    • Employer's health insurance contribution or other social insurance contributions do not have to be paid, because the work is done by a company.

If the company or entrepreneur you are using is not registered in the prepayment register and the compensation you pay for work exceeds EUR 1,500 per year: 

  • Report to the Incomes Register the amount of non-wage compensation for work paid, the tax withheld and other possible payments, such as reimbursements of expenses. No minimum sum in euros applies. The information is submitted on an earnings payment report.
    • Employer's health insurance contributions or other social insurance contributions do not have to be paid, because the work is done by a company. 

Check the deadlines for reporting: When will paid wages and other earned income be reported to the Incomes Register?

How should the information be reported to the Incomes Register?

You may report the information to the Incomes Register for instance on the online form of the Incomes Register's e-service, into which you log in from the website incomesregister.fi. The service requires authentication of the payer with online banking codes, a mobile certificate or certificate card. The payer may authorise another person or company to transact business on their behalf. Authorisations are generated in the Suomi.fi authorisation service. Authorisation for using the Incomes Register is possible from autumn 2018.

As non-wage compensation for work cannot be paid in the Palkka.fi service, the service does not send reports to the Incomes Register on them.

Information can be reported to the Incomes Register on a paper form only in special circumstances, for example, if filing an electronic report is impossible for an individual, estate, casual employer or foreign national due to technical obstacles.

Read more on the reporting channels.