The standard tax year in Finland is the calendar year. Alternate tax years corresponding to a taxpayer’s financial year are allowed.
Annual tax returns must be filed no later than four months following the close of the tax year.
In the case of non-residents, the Finnish tax administration generally sends a pre-completed annual tax return to the foreign entities which have or may have a PE in Finland, based on information available with/ obtained by them. The foreign entity receiving such tax return is obliged either to file a tax return or provide evidence that its activities in Finland do not establish a PE in Finland. However, if the foreign entity has received any income from Finland which has not been subject to withholding tax, then it is required to file a tax return on such income out of its own initiative.
In response to the COVID-19 pandemic, the Finnish Tax Administration extended the deadline for an annual corporate tax return by one month in respect of accounting periods ending between December 2019 and February 2020. Accordingly, companies may file returns within five months from the end of the accounting period, instead of the standard timeline of four months.
Companies in Finland are generally required to make monthly advance tax payments based on the taxable income of the previous 2 years. The advance payments are due by the 23rd of each month. However, if the total amount of tax to be paid does not exceed EUR 1,700, only 2 advance payments are required in the third and the ninth month of the tax year.
Any outstanding balance due following the final assessment is due by the 25th of the month following the completion of the final assessment. However, any balance due is subject to interest if paid after the tax return deadline.
If the advance tax paid exceeds the final tax liability, the excess tax is refunded.
In response to the COVID-19 pandemic, Finland announced facilitated tax payment arrangements which include:
- Relaxation and more time for the tax payments upon a request from the taxpayer effective from 21 April 2021 until 31 August 2021 (previously applied from March 2020 until August 2020);
- The payment arrangement may last up to a maximum of 24 months and includes all outstanding taxes as well taxes due within the next 45 days; and
- Suspension of recovery proceedings once request for a payment arrangement is made.
Tax returns are mandatorily required to be filed electronically via the VERO SKATT website (including VAT returns) (Finnish/English).