This guidance concerns both individual and corporate taxpayers alike.
If you encounter temporary financial difficulties, you can ask for an extension of time to pay your taxes. The Tax Administration will make an arrangement with you if the legal requirements for it are fulfilled. When you are on a payment plan under an arrangement, you must pay interest on the taxes during the period beyond their original due date or dates. This interest is added to the total taxes.
The requirements for a payment arrangement
For a payment arrangement to be made, it is required that
- the financial difficulties you are having are temporary
- you have no taxes undergoing recovery by an enforcement authority
- you have filed your tax returns and payroll reports
- if you have been on a payment plan previously, you have paid up all the amounts
- the Tax Administration has decided that in order to safeguard its tax revenue, it is useful to make the arrangement.
However, if the tax in question is a back tax, you cannot request a payment arrangement until the tax assessment has been finished for the year.
Asking for a payment arrangement
You can make the request
- in MyTax (tax.fi/mytax), for self-assessed taxes, income tax, inheritance tax or gift tax.
- at our service number 029 497 028 (standard call rates) for real estate tax, transfer tax, car tax, and excise duty.
Read more: How to request a payment arrangement in MyTax.
If the unpaid taxes are those of a deceased person or if they are the taxes of an estate, a shareholder of the estate who is authorised to manage its affairs can ask for the payment plan; he or she must have a letter of authorisation signed by all the other shareholders. The shareholders may also give such an authorisation to someone outside the estate.
When the Tax Administration has approved your arrangement, you receive a payment plan that you must follow
The arrangement will come into force as soon as the request is granted. If you use MyTax to ask for the arrangement, the answer to your request will be displayed there as soon as the Tax Administration has dealt with it. The answer will also be sent to you by post; this will take place approximately one week after the date when you submitted the request. If your request is not granted, you will be notified by letter or by phone. Please note that the decision on payment arrangement, the payment plan, and the instructions for payment will only be available in Finnish or Swedish.
When an arrangement is in force, the Tax Administration will refrain from sending the taxes to the enforcement authority for recovery. In the same way, when it is in force, the validity of a business's registration with the Prepayment Register will not be cancelled, the tax debts that the arrangement covers will not be shown in the Tax Debt Register or and submitted for public disclosure on the protest list.
Refer to the payment instructions you received enclosed with your payment plan
We send you a payment plan outlining the taxes covered by it and instructions for making the payments. You must pay every month, in equal-size installments. The first due date will be within one month after the date when your request was granted. No changes can be made later to the length of the payment plan, or to the amounts of the installments. However, you may them pay up faster if you can. Information on payment plans is also delivered to the taxpayer's MyTax if the arrangement concerns self-assessed taxes, income taxes, inheritance tax and gift tax.
Any self-assessed taxes that are not covered by the payment plan must be filed and paid in the usual way. Follow the instructions as appropriate. Please note that the earliest time when you can pay these self-assessed taxes is at the start of the calendar month when they fall due.
A payment arrangement does not change the amount of any penalty interest. Even if the payment date of a tax is pushed forward because of a payment arrangement, the interest is still calculated from the day after the original due date, up to the actual date of payment. For 2018, the rate is 7%.
Is it possible for a payment arrangement to lapse?
The payment arrangement lapses if
- You fail to follow the plan
- You build up some new tax debt when you are on the payment plan
- You fail to comply with your information-reporting requirement: you do not file a tax return on self-assessment when it falls due, you do not file an income tax return, etc.
If the arrangement is lapsed, the taxpayer will be notified by letter. In these circumstances, the Tax Administration will transfer the owed taxes to the enforcement authority. If unpaid VAT, withholding, and employer's health insurance contributions are involved, we may report the owed amounts for public disclosure on the Protest List. If you are an operator of a business, your tax debts may be publicly disclosed through the Register of Tax Debts.
The Tax Administration will not lay out a new payment plan for the amounts remaining unpaid at this stage.
Impact of a payment arrangement on tax refunds
If you are to receive a refund when you are on a payment plan, it is set off against your owed taxes covered by the plan.
If this happens to you, and the Tax Administration uses the money that would otherwise have been refunded to you, we recommend that you continue making the payments according to the plan. Use of refundable money will shorten the total length of your arrangement, giving you credit for the final instalments of the original payment plan.