Back taxes — how to pay them
This guidance is for individuals, self-employed operators of a trade or business, partners of general partnerships, partners of limited partnerships and individuals with agricultural operations, including farm and forestry operators or owners.
When do I need to pay back taxes?
If you have not paid sufficient taxes during the previous year, you must pay the missing taxes retroactively as back taxes. You will receive the bank transfer details for paying back taxes from the Tax Administration, together with the tax decision. The first instalment of back taxes for the tax year 2017 is due on 3 December 2018 and the second instalment is due on 2 February 2019.
If the amount of back taxes is €170 or more, the sum is divided into two instalments. Back taxes of less than €170 must be paid as a lump sum on 3 December 2018.
Check the payment details in MyTax
You can see the amount of back taxes and the payment details in MyTax. You can log into MyTax with your e-bank codes or a mobile certificate.
You can also view your 2017 tax decision and the bank forms included with it.
Pay your back taxes online in MyTax
You can pay your back taxes online via MyTax, where the necessary details are already on the payment template. When you pay the tax via MyTax, the payment will be debited from your account on the same day. The due date cannot be changed.
Once you have paid, the payment is displayed in MyTax within 1-2 days.
Start using the e-invoice or direct payment
You can choose to pay your back taxes with e-invoice or by direct payment. E-invoicing or direct payment can be used by individual and self-employed taxpayers. Direct payment is aimed at customers who do not use online banking.
Make the e-invoice order in your online bank or the direct payment order with your bank at least three weeks before the due date of your back taxes payment. You will receive the e-invoice in our online bank about two weeks before the due date. Read more.
Note that payments that arrive will be used for your income tax in the order of the due dates. If you have other unpaid income tax in addition to the back taxes, such as a prepayment, the amount you pay us will be used to cover that first. Read more about how the Tax Administration uses inbound payments to cover different taxes.
There is a reminder for overdue back taxes in the summary
The Tax Administration no longer sends separate payment reminders for back taxes. Instead, you will be reminded of unpaid taxes in a payment reminder on the monthly summary.
The summary is generated at the end of the month and can be viewed in MyTax immediately at the beginning of the following month. Individual taxpayers generally receive the summary by post.
If you are VAT liable or are registered in the Employer Register, you will only receive the summary in MyTax.
You will only receive the summary in MyTax if you have activated government e-services at suomi.fi/messages.
Late payment of back taxes is subject to late payment interest
The late-payment interest is calculated from the day following the due date to the payment date (including these days). The interest rate for late-payment interest is confirmed annually. In 2018, the interest for late payment is 7%. The actual days of the month and year count as interest days. In 2018, there are 365 interest days.
Calculate and pay the late-payment interest to the cent, as there is no minimum amount of interest. Add the late-payment interest to the amount of taxes payable and pay the total sum at once using the same payment details. The payment will always be used first for the late-payment interest and only then for taxes. Please note that late-payment interest will also be charged on any tax increase.
Back taxes are also subject to interest on back taxes
For the 2017 tax year, taxpayers were still able to make supplementary prepayments interest-free until January 2018. For back taxes, interest will be calculated from 1 February 2018 up to the first due date for the back taxes. The rate of interest on back taxes is officially confirmed for each year. The rate is different for different amounts of back taxes. For tax year 2017
- the rate of interest for amounts below €10,000 is 0.5%
- for the part going over €10,000 the rate is 2%.
€20 or the total amount of interest, whichever is higher, is deducted from any interest on back taxes. In practice, you will have to pay interest on residual tax for the 2017 tax year if your back taxes exceed €4,788. The assessment decision indicates the amount of interest on back taxes you must pay. Pay it together with the back tax in a single transaction.
If you are unable to pay on time, you can request a payment arrangement
If you are unable to pay the tax by the due date specified on the reminder in the summary, you can request a payment plan. Read more about payment arrangements.
If the Tax Administration initiates tax recovery proceedings for unpaid taxes, the tax that is being recovered must be paid to the enforcement authorities according to their instructions. Before recovery proceedings are initiated for taxes, you will receive a payment reminder on the summary. To avoid the matter being transferred to the enforcement authorities, pay the tax by the due date specified in the summary.
If you have any questions about paying back taxes, please call our service number +358 (0)29 512 2500. If your question concerns the amount of back taxes or your tax decision (e.g. deductions), call the service number +358 (0)29 497 002.
FAQ about payments
In 2019, the end date of the assessment process is different for each taxpayer: you can see the end on your tax decision. The due date for paying back taxes and the payment date for tax refunds are determined by the end date. For some taxpayers, assessment may end considerably earlier, which means that the due dates of any back taxes will also be earlier. For most taxpayers, back taxes will already fall due in August. You can see the due dates and the payable amount in the tax decisions sent to you or in MyTax.
Your due dates will be affected by:
- your own end date of assessment
- the changes you make to your tax return
- changes made by your spouse to their tax return.
You will receive the bank transfer forms for back taxes along with your pre-completed tax return in the spring. If you do not need to correct or supplement your tax return, the bank transfer details will be valid as such. You should save them for payment. If your taxation changes, the Tax Administration will send you a new tax decision in the autumn with new payment information.
As of November 2018, all taxpayers can use the Tax Administration’s new account number and income tax reference number for the payment of back taxes. You can find the reference and account number in MyTax. You can also pay the back taxes via MyTax.
You can use the account and reference numbers on the bank transfer forms that you already received for payment. The payment will be used for income taxes in the order of the due dates, in the same way as when using the new income tax reference number. If you have a prepayment that falls due before the due date of the back taxes, the payment will first be used for that.
You can pay back taxes before the due date using the income tax reference number. The payment will be used for income taxes in the order of the due dates from the oldest to the most recent. If you have a prepayment that falls due before the due date of the back taxes, the payment will first be used for that.
Example: You have € 1,000 in back taxes due for payment on 3 December 2018 and a prepayment of € 100 due on 23 November 2018. When you pay the back taxes in advance on 10 November, the payment will first be used as a € 100 instalment for the prepayment and then as a EUR 900 instalment for back taxes. When you pay a €100 instalment for back taxes on 23 November 2018, the payment will be used for the remaining back taxes.
If you have paid back taxes or a supplementary prepayment for the 2017 tax year in advance by 1 October 2018, you will have received a new tax decision and bank transfer forms that take account of the sum you have paid in terms of both the amount of tax and interest. The new tax decision and bank transfer forms will have been sent to you by the end of October.
If you have paid back taxes before the due date but after 1 October 2018, no new bank transfer forms will be sent to you. If you still need to make a payment, the due date for paying the first back taxes instalment is 3 December 2018. If the remaining tax is less than € 170, it must be paid in one instalment in December. Back taxes that exceed € 170 are divided into two payment instalments in December and February.
Example: The amount of back taxes is € 300, which is divided into payment instalments of € 150 payable in December and February. You paid the December instalment, € 150, on 13 June 2018. You have received a new tax decision and bank transfer form, where the due date for the unpaid € 150 in back taxes is in December. In other words, you will not avoid the December payment instalment by paying the December instalment in advance.
Example: Your total of back taxes is € 550. The instalments are € 275 in December and € 275 in February. You pay € 200 on 18 July 2018. You will receive a new tax decision and bank transfer forms, where the instalments are €175 in December and €175 in February.
You can pay both instalments at once by adding up the instalments and using the reference number on the bank transfer forms or the reference number for income tax found in MyTax. The payment will be used for income tax, including any prepayments, in the order of the due dates.
If you have paid too much, the payments will be used for your income tax, including undue instalments, in the order of the due dates. If all your income taxes are paid, the excess payment will be used for other due taxes, such as real estate tax. The remaining sum will be refunded to the bank account you have specified, unless you have debts in enforcement.
If you have paid both instalments of back taxes using the reference number for the first or second instalment, the payments will be allocated correctly. The payments will be used for income taxes in the order of their due dates, from the oldest to the most recent.
When paying back taxes, you should always use the bank account number and reference number specified in the bank transfer details. The reference number in RF form should be used in full, including the letters RF. If you cannot enter the RF-form reference for some reason, you can leave out the first four characters.
If you cannot use a reference number when paying from a foreign online bank for example, add the entire reference number in the message field.