Income and deductions used in the calculation of prepayments for 2019
As a rule, prepayments are based on the final tax assessment data for 2017. However, the business income has been raised by 7.5%.
If you have changed your prepayments during 2018, the prepayments for 2019 are based on recalculation. If you have filed a rental income amount for 2019, the prepayments are based on the information you have filed.
The following items have not been taken into account in the calculation:
- dividend income
- profit surplus paid by cooperatives
- international dividend income
- income from timber sales.
If you have received compensations for use (royalties) regarded as capital income in 2017, you will be taxed according to your tax card rather than make prepayments.
Withholding on dividends and profit surplus
Withholding on dividends
The tax rate on dividends from listed companies is 25.5%.
The tax rate on dividends from unlisted companies is
- 7.5% up to €150,000
- 28% on the amount exceeding €150,000.
The withholding rate is calculated on the total dividend amount, not just on the taxable portion.
If you receive dividend from an unlisted company, you should apply for a tax card. Report the gross amount of dividend:
- Calculate 8% of the mathematical value of your shares.
- Report the portion corresponding to 8% as dividend taxable as capital income.
- Report the remaining portion as dividend taxable as earned income.
Further information about dividend tax (in Finnish and Swedish only)
Withholding on profit surplus
The tax rate on profit surplus from listed cooperatives is 25.5%.
The tax rate on profit surplus from unlisted cooperatives is
- 7.5% up to €5,000
- 25.5% on the amount exceeding €5,000.
Cooperatives distributing profit surplus must keep track of when the €5,000 threshold is exceeded. If needed, you can change your tax card if you receive profit surplus from an unlisted cooperative.
Tax base details for 2019
- Income tax schedule for 2019
- Income tax rates in municipalities and parishes for 2019
- Municipal income tax of non-resident taxpayers 19.75%
- Health care contribution
- on wage and work income 0%
- on pensions and benefits 1.61%.
- Daily allowance contribution (for 16- to 67-year-olds)
- 0% for wage earners whose annual income is under €14,282
- 1.54% for wage earners whose annual income is €14,282 or more
- 1.77% for self-employed individuals whose annual income is €14,282 or more
- 0.23% for self-employed individuals whose annual income is under €14,282
- Public Broadcasting Tax 2.50%
- Tax rate on capital income
- 30% up to €30,000
- 34% on the amount exceeding €30,000
Prepayments can be changed
You can ask for your prepayments to be changed or cancelled up until the completion of your tax assessment. Your prepayment instalments remain in effect until you receive a new decision.