Operators of agriculture or forestry
If the deceased person was an operator of an agricultural or forestry farm, the operation is transferred to the death estate. As long as the estate is not distributed, its shareholders have joint responsibility for dealing with the estate’s tax affairs.
This means that they must submit the tax returns for the agricultural or forestry operation in the same way as the decedent had done during their lifetime:
However, no tax return needs to be submitted for agriculture and forestry for a calendar year when no tax-reportable activities were carried out.
It is enough to submit just one tax return on the behalf of an estate, regardless of how many shareholders the estate might have.
Managing the estate’s taxes in MyTax
After an individual passes away, their MyTax account becomes inaccessible. However, in the case of a deceased farmer or forester, you can log in to MyTax to manage the taxes – which now belong to the death estate – if there is a Business ID issued during the deceased person’s lifetime. The death estate will have the same Business ID as the deceased person had.
- Electronically provided services can be accessed on the estate’s behalf if the shareholders of the estate grant a Suomi.fi authorisation for managing tax matters to someone, typically to someone among the shareholders. How to grant a Suomi.fi authorisation for tax matters
- In addition to the Suomi.fi authorisation, the authorised person must have personal e-bank security codes or a mobile certificate for logging in to MyTax. After login, the selection “Act on behalf of a company” must be made in MyTax to make the death estate’s tax information appear.
Tax return filing – when activities are being continued as before
The assessment of taxes for the year when the decedent passed away is no different from the assessment of that person’s income and deductions if they had continued to live through the entire year. The spring months following the end of the year of the decedent’s death is when the estate must begin submitting the tax returns.
Agriculture: After the death of a spouse, the tax rules that concern couples operating a self-employed activity will continue to be adhered to, up to the end of the calendar year of death.
Go to the instructions:
The assessment of taxes for the year when the decedent passed away is no different from the assessment of that person’s income and deductions if they had continued to live through the entire year. The spring months following the end of the year of the decedent’s death is when the estate must begin submitting the tax returns.
Agriculture: After the death of a spouse, the tax rules that concern couples operating a self-employed activity will continue to be adhered to, up to the end of the calendar year of death.
Go to the instructions:
If the operator of agriculture or forestry died and their death caused a delay in submitting a tax return, or if no tax return was submitted at all, the inheritors must ensure that the delayed or missed tax return is finally submitted to the Tax Administration.
It is generally permissible to submit a tax return although its due date has passed. If you intend to submit a return in circumstances similar to what is described above and you have no access to MyTax because no Suomi.fi authorisation has yet been given to you, you can complete and send a paper version of the return.
Go to the instructions:
Termination of the estate’s agricultural or forestry operation
When the estate stops operating agriculture or an activity subject to value-added taxation:
- File the Notification of termination.
- Apply for de-registration of the estate from the Tax Administration’s registers.
- Submit the tax returns for the estate’s final accounting period or tax period.
Please note that if the estate’s activity subject to value-added taxation is terminated but other operations will continue, it is important that you apply for removal of the estate from the VAT register.
As long as no distribution of the estate is made, the Tax Administration will continue to send a pre-completed tax return to the estate.
Termination of business – businesses and organisations
How to unregister from the Finnish Tax Administration's register in MyTax
When the estate stops operating agriculture, forestry or an activity subject to value-added taxation
- File the Notification of termination.
- Apply for de-registration of the estate from the Tax Administration’s registers.
- Deliver a photocopy of the deed of distribution to the Tax Administration.
- Submit the tax returns for the estate’s final accounting period or tax period.
Termination of business – businesses and organisations
How to unregister from the Finnish Tax Administration's register in MyTax
Frequently asked questions
Tax return for agricultural operations
Report the following:
- revenue from farming – typically the proceeds you receive from the sales of crops, produce, etc.
- costs related to the agricultural operation, such as the prices paid for fertilizer and seeds
- the farm’s property and debts
- any income you receive from renting out the farm’s property including rental of fields, and rental income for land rented out to a wind turbine company, for example
Please note:
The estate is an entity concerned by a recordkeeping obligation; proper financial records covering the agricultural operation’s income and expenses must be maintained.
Tax return for forestry
Report the following:
- revenue from forestry, typically the proceeds you receive from the selling of timber
- costs related to forestry, such as travel expenses connected to trips to forest land areas
- accounting information for purposes of the forestry deduction and reserves
Please note:
The estate is an entity concerned by a recordkeeping obligation; proper financial records covering the forestry operation’s income and expenses must be maintained.
When selling timber, the contracts and other documents must quote the estate’s Business ID if the estate is VAT-registered.
VAT returns
Report the following:
- the value-added tax you must pay due to sales of timber
- the deduction based on the VAT which is included in the prices of goods and services you buy that are necessary for the conduct of the forestry operation
Please note that any tax-related issues having to do with the decedent’s, the surviving spouse’s or an inheritor’s personal economic affairs must be kept outside of the death estate’s tax returns for agriculture, forestry and value-added taxes.
After division is finalised, i.e. the part that the surviving spouse continues to own is fully separated from the part the estate has become the owner of, the surviving spouse and the estate are the partners in a partnership formed for purposes of taxation (either an agricultural partnership or a forestry partnership).
In this case, responsibility for income from agriculture and forestry and for submittal of tax returns lies with the newly formed partnership. If after the division, the surviving spouse declares that he or she will retain possession rights to all the assets and property of the farm or forestry unit, the party that must pay income tax for agriculture/forestry is the surviving spouse.
Please note: After a finalised division, remember to send a photocopy of the deed of division and distribution of inheritance to the Tax Administration.
See the instructions: Distribution of estate – send a photocopy of the deed of distribution to the Tax Administration