Guidance on how the prepayments of an individual taxpayer should be paid
This guidance is for individuals, self-employed operators of a trade or business, self-employed professionals, partners of general partnerships, partners of limited partnerships, and for individuals with agricultural operations including farm and forestry operators or owners.
What kind of income is subject to prepayments?
Prepayments are imposed on the categories of income that are not subject to withholding by the payor. Prepayments are normally collected on the income of self-employed individuals operating
- a rental operation,
- those who have sold a valuable asset and made a profit must make prepayments, too.
If you have income that falls into the above categories, you must inform the Tax Administration about them so a pre-assessment calculation can be made and prepayments can be imposed. You must provide the Tax Administration with an estimate that can be used.
You receive a decision and instructions for payment
If you receive income subject to prepayments, the Tax Administration sends you a decision letter, which indicates the results of your preassessment calculation, and also sends you a set of bank forms for making the payments. If the income you reported previously has stayed the same, you receive the prepayment documentation and bank forms automatically, and no action is required on your part. In addition to your tax return and our database information from previous years, we may also use information we have received from third parties.
Payment amounts and due dates are printed on the decision letter and bank forms. The general due date is the 23rd of each month. If the due date is a Saturday, Sunday or other holiday, you can pay on the next business day without having to pay a late-payment charge.
Requesting bank forms
If necessary, you can ask for a new set of bank forms to be delivered to you. They will be sent to you within a week. We send you the new bank forms by post, to the address that the Tax Administration has on file. The new set of bank forms will cover all your instalments if you are expected to pay the prepayments in multiple instalments.
- Request new bank forms (in Finnish and Swedish)
Using the bank reference number
When paying, enter the bank account number and reference code that are printed on the forms.
Enter the full RF code in the payment information, including the letters RF. If you are unable to use the entire RF reference, you can leave out the letters RF and the first two numbers.
How many instalments
Individual taxpayers make prepayments in two or more instalments of equal size. The minimum amount is €170. This means that if your calculated prepayment amount is below €170, you don't have to pre-pay it. It will be included in your regular assessment of income taxes after the tax year is over. Prepayments of taxes above the minimum threshold are split into instalments as follows:
|Prepayment amount, €||How many instalments||Months of payment|
|170 - 500||2||March and September|
|more than 500 but no more than 1,700||3||February, July and November|
|more than 1,700 but no more than 10,000||6||February, April, June, August, October and December|
|over 10,000||12||January - December|
You can make your prepayments with an e-invoice or by direct payment
Both e-invoice and direct payment are safe and easy ways for taking care of your prepayments. These two electronic methods of payment are available to individual taxpayers and self-employed individuals who operate a trade or business. Direct payment is a method intended for those who do not use online banking.
Contact your bank at least three weeks before the due date of your prepayments to agree on e-invoicing or direct payments. You will see the e-invoice in your e-bank approximately two weeks before every due date.
Read more: vero.fi/elasku (in Finnish and Swedish)
Consequences of late payment
Prepayments past due date will collect late-payment interest. Use the same bank form for the interest payment as you use for the prepayments. Use the late-payment calculator to figure out the exact amount. Interest period starts on the day after the due date and ends on payment, and the interest calculation includes both these dates. The interest rate is officially defined for every year. For 2018, it is 7%. Its threshold amount is €3.
If you miss an instalment, the Tax Administration will send you a reminder the month after the month of the due date. If the due date printed on the reminder letter passes and the tax is still unpaid, we normally transfer the matter to the enforcement authorities for recovery. Taxes that have been sent to enforcement authorities must be paid to them, following the payment instructions of the relevant enforcement office. If the prepayments are undergoing recovery, you must pay an additional charge to the enforcement office even if you were to pay the amount into the bank account of the Tax Administration.
How late-payment charges affect back taxes
You receive credit for all prepayments you have made by 30 September, i.e. one month in advance of the date when the Tax Administration's assessment process is finished. However, if you have not made your prepayments on time, you must pay them later. The unpaid amount is added to your back taxes.
The rules that determine how late-payment interest is imposed on back taxes also restrict the interest in cases where the back tax is caused by unpaid prepayments. This restriction is in force because two late-payment penalty charges (for back taxes, and also for prepayments) should not be imposed when there is only one unpaid amount.
- Interest on back taxes is not imposed on the part of the back taxes that was imposed because the taxpayer did not pay their prepayments. Unpaid prepayments will collect late-payment interest up to the first due date of back taxes.
Example: Prepayments should have been paid by the taxpayer by 23 June 2017, but no payment arrived, not even by 30 September 2018. The Tax Administration will collect late-payment interest starting 24 June 2017, and ending on the first due date of back taxes.
- If part of the taxpayer's back taxes is due to other reasons than unpaid prepayments, the amount relating to these other reasons will collect interest in the usual way. For back taxes for the 2017 tax year, the interest period begins 1 February 2018 and ends on the first due date of back taxes.
If the taxpayer fails to pay some of their prepayments, the Tax Administration will calculate and impose a late-payment interest when the taxpayer's assessment process is being finalised, if not before. This procedure is followed even in cases where the imposed prepayments turn out to be unnecessary, unless the taxpayer had filed a specific application for the removal of his or her prepayment obligation.
If you have any questions about prepayments, you can call the Tax Administration service number 029 497 026 (standard call rates).
If you want to change the amounts of your prepayments, call:
- 029 497 000, the service number for individual taxpayers (standard call rates)
- 029 497 004, the service number for self-employed individuals, consortia and partnerships (standard call rates)