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Pay the taxes on the income you receive from investments

You must take care of paying the taxes on the sales profit of your investments, such as shares and fund shares. You pay tax on shares when you sell them.

With regard to dividend income, profit shares of investment funds and income from an equity savings account, the payer or the bank withholds taxes and forwards them to the Tax Administration. This means that you do not need to take care of the payments yourself.

Pay the tax on the sales profit from shares yourself

You must pay capital income tax on the profit you receive from selling your investments.

Tax rate on capital income

TTable of the tax rates on capital income
Up to €30,000 30 %
Over €30,000 34 %

You can either pre-pay the tax on the sales profit or make an additional prepayment.

Make a tax prepayment

You should primarily make a prepayment of the tax on the sales profit from your investments. The amount is based on an estimate on your taxable income during the tax year. If your prepayment is sufficient, you will not have to pay back taxes, i.e. residual tax.
You can request prepayment by one of the following methods:

  • Via MyTax
  • With the form 5010 (Application for tax card and/or tax prepayment)
  • By telephone via the tax card service number +358 29 497 000.

How to apply for prepayment online in MyTax

You will receive the decision on prepayment in MyTax and by post. The decision includes information on how to pay the tax. You can pre-pay either in MyTax or your online bank, or as an e-invoice or direct payment.

Request and pay taxes as an additional prepayment

If you have not requested prepayment, or if the prepayment was not large enough, you can apply for an additional prepayment and pay it after the request. With an additional prepayment, you can supplement the tax prepayment after the end of the tax year. The request should be made immediately in January following the year when you sold your investment, so that you can avoid the late-payment interest with relief

You can also request an additional prepayment later, as long as you do it before your tax assessment ends. You can see the end date of your tax assessment on the tax decision you have received. Please note, however, that you will have to pay late-payment interest with relief on the additional prepayment starting from the end of February until the due date of the back taxes or the due date of the additional prepayment.

You can see the amount of the late-payment interest with relief in MyTax or on your tax decision on paper.

If you request and make a sufficient additional prepayment, you will not need to pay back taxes. You can request an additional prepayment by one of the following methods:

  • Via MyTax
  • With the form 5010 (Application for tax card and/or tax prepayment)
  • By telephone via the tax card service number +358 29 497 000.

How to request an additional prepayment in MyTax

After you have requested an additional prepayment, the Tax Administration will send you a decision on the additional prepayment with instructions on how to pay. You can make the additional prepayment in MyTax or your online bank, for example.

Example: Jaana sold EUR 20,000 worth of shares in December 2019. She received EUR 5,000 as profit from selling the shares. Jaana must pay EUR 5,000 × 30% = EUR 1,500 of capital income tax on the sales profit.
Jaana should request an additional prepayment and make the payment it in January 2020. In this way, she can avoid back taxes and interest.
The end date of Jaana’s tax assessment is only at the end of June 2020, and therefore she can request and make an additional prepayment until then, if she wants. Starting from February 2020, however, she will have to pay late-payment interest with relief on the additional prepayment.

The party paying the dividend or profit share withholds the tax

Before paying you the dividend or profit share of an investment fund, the company withholds tax on the amount. The company also forwards the withholding tax to the Tax Administration. This means that you do not have to pay the tax yourself.

Withholding rates of dividends and profit shares of investment funds
Withholding tax on dividends you receive from a listed company, i.e. public company
Read more on the taxation of dividends from a listed company.
25,5 %
Withholding tax on dividends you have received from an unlisted company, i.e. not a public company, if the dividend is EUR 150,000 at maximum
Read more on the taxation of dividends from an unlisted company
7,5 %
Withholding tax on dividends you have received from an unlisted company, i.e. not a public company, if the dividend is over EUR 150,000. Withholding tax on the part over EUR 150,000.
Read more on the taxation of dividends from an unlisted company
28 %
Withholding tax on a profit share of an investment fund
Read more on the taxation of dividends from an unlisted company
30 %

A foreign payer can withhold tax at source, but it does not withhold tax otherwise.

Equity savings accounts are also subject to withholding tax

For an equity savings account, tax is withheld by a bank or other service provider. Tax is only withheld when you withdraw money from your equity savings account. The withholding rate for the profit from an equity savings account is 30%. Read more about the taxation of equity savings accounts.