Taxation and statutory fees

(Updated: 31.3.2020)

Due to the exceptional circumstances caused by the coronavirus the Tax Administration will relieve the terms of payment arrangements until further notice. Furthermore, the Ministry of Finance is preparing an amendment on temporary lowering of the interest for late payment concerning those taxes that are included in the payment arrangement.

The primary objective of those amendments is to ease the payment difficulties of companies and sole traders in particular during the coronavirus pandemic.

The payment schedule of payment arrangements will be extended and interest for late payment will be lowered temporarily

The charges for granting payment arrangement and its terms will enter into force with the amendment to the law. The changes will be applied to payment arrangements that have been applied for from 25 March on and by the end of August.

  • The first installment in accordance with payment arrangement shall be three months after the approval of the payment arrangement instead of the current time of one month.
  • The Tax Administration will add the new tax debt generated after the payment arrangement automatically to the payment arrangement until 31 May 2020.
  • According to the amendment to the law being prepared, the interest for late payment for taxes in payment arrangement would be lowered from 7 per cent to 4 per cent. The lowered interest rate would only be applied to taxes in payment arrangement that have fallen due after 1 March 2020.

Terms of payment arrangement

Payment arrangement is a way to get more time for the payment of taxes. It means that the Tax Administration will not initiate collection measures, if you have a valid payment arrangement.

In the current exceptional situation the Tax Administration is temporarily facilitating the entry into the payment arrangement. However, you are only eligible for payment arrangement, if

  • You have no funds in execution
  • You have filed all tax returns as well as salary information notifications and employer’s separate notifications to the Incomes Register.

A previously lapsed payment arrangement may also prevent the approval of a new payment arrangement.

What should I do as the amount of taxes is too high or I am unable to file the tax return on time? 

You can request a change to your prepayments in the Tax Administration’s MyTax online service, if your profit will be smaller than anticipated. Due to the coronavirus situation, prepayments can exceptionally be lowered based on your announcement without any interim financial statements or other written documents. It is also possible to request a change to the monthly instalments of prepayments.

It is not possible to grant more time for the notifications of self-assessed taxes (e.g. value added tax), but the late penalty charges may be left uncollected for a specific reason, e.g. due to illness.

A request for the non-collection of late penalty charges can be presented on the due date of the notification (12th day of each month) or immediately thereafter
Tax Administration telephone service 029 497 008 (value added taxation) or by a message through MyTax (Omat veroasiat > toiminnot > kaikki toiminnot > viestit ja ajanvaraus > lähetä viesti).

Links

Requesting a payment arrangement (Vero.fi instructions to customers)
The Finnish Tax Administration supports businesses during the coronavirus pandemic (Tax Administration news 15 March 2020)
Payment arrangements of taxes are facilitated for companies (Ministry of Finance press release 18 March 2020, in Finnish)
Current updates to entrepreneurs (Vero.fi web site)

Earnings-related pension contributions

Earnings-related pension companies will be allowed to extend the payment time of earnings-related pension contributions and self-employed persons’ pension contributions to three months.

The Government reacted to the economic impacts of the coronavirus e.g. by granting an extra budget to the Ministry of Social Affairs and Health.

The Ministry of Social Affairs and Health made a decision on 19 March 2020 by which earnings-related pension companies are given the option to extend the payment time of earnings-related pension contributions and self-employed persons’ pension contributions to three months at request of employers and entrepreneurs.

The change will provide flexibility in the payment of earnings-related pension contributions for employers and entrepreneurs that are in difficult financial conditions.

A list of questions related to the impacts of the coronavirus compiled by Ilmarinen Mutual Pension Insurance Company (in Finnish).