Example: how a tax refund is used on an inheritance tax
In this example, an individual taxpayer must pay an inheritance tax that falls due on 1 July, and the taxpayer’s tax-refund date is 3 August.
The following is an illustration of what happens when he or she pays the tax on its due date 1 July, and at the same time, the Tax Administration is using the refund on the tax.
-
1
The end date of your income tax assessment is in June
-
In this example, your tax decision indicates that you will receive €1,000 as a refund, and the date when the refund will arrive is 3 August.
-
2
The due date of the inheritance tax is 1 July
-
You can see the inheritance tax amount and due dates in your tax decision
Let us assume that the amount is €600. It falls due for payment on 1 July.
-
3
On 1 July, part of your refund is used on the inheritance tax
-
The Tax Administration uses part of your refund on the inheritance tax on 1 July although you made a payment on the due date
The inheritance tax (€600) falling due on 1 July is fully settled by the tax refund. After that, €400 remain. This amount is transferred to your bank account on your tax refund date, i.e. on 3 August.
-
4
Your payment will be used on the next instalment of inheritance tax
-
However, if your inheritance tax consists of only one instalment, the Tax Administration will send the payment back to you in a week.
-
5
The summary provides you with information on how refunds are used
-
You will see your summary in MyTax at the beginning of September
In addition, a paper summary will be sent to you by letter if you have not enabled Suomi.fi Messages. -
6
You receive your refund on 3 August
-
The amount is €400
After the Tax Administration used part of the refund on your inheritance tax on 1 July, the amount that remains is €400. You receive it in your bank account on 3 August.