Which types of income are subject to prepayments?

Individual taxpayer

Prepayments are collected from income for which no taxes are withheld. Examples of such income include:

  • rental income
  • capital gains from sold assets
  • foreign income, e.g. pensions
Business owners, self-employed
Agricultural taxpayers
  • Taxable profits from business, Taxable profits from agriculture
  • All other income during the tax year after deductions
  • Health insurance contribution and daily allowance contribution are calculated based on the work income under YEL/MYEL.
Shareholders of a partnership or limited partnership
  • Compensation agreed to be paid to the shareholder
  • The shareholder's other income during the tax year, after deductions
Limited-liability companies and cooperative societies
  • 20% of taxable income
Associations and foundations promoting the public good
  • 20% of business income
  • 6.27% of the taxable income derived from real estate or agriculture
Other associations and foundations, not promoting the public good
  • 20% of the entire turnover

YEL and MYEL income as the basis for prepayments

If you are a self-employed person or a farmer, the Tax Administration receives information on your estimated work income, which is the basis for the pension insurance contributions for self-employed persons (YEL work income) or farmers (MYEL work income) and for future pension. The Tax Administration receives this information annually from pension insurance institutions.

In the calculation of the health insurance contribution for persons insured under the act on pensions for self-employed persons (YEL) or the act on pensions for farmers (MYEL), YEL or MYEL work income replaces income from business activities. The health insurance contribution is calculated based on your work income and your other earned income that has not been replaced with work income.

The daily allowance contribution of health insurance is also collected from self-employed individuals. The daily allowance contribution is calculated based on wage income and work income under YEL/MYEL. If a self-employed person is insured under YEL, the increased daily allowance contribution is collected on their YEL work income. The increased daily allowance contribution is not collected on MYEL work income.

More information on the health care contribution and daily allowance contribution of the health insurance (in finnish and swedish)