Failure to file a tax return by the due date will result in a penalty of up to EUR 300.
Late tax payments are subject to an interest penalty at an annual rate of 7% (previously 7.5%).
In response to the COVID-19 pandemic, Finland announced a reduction in the rate of late-payment interest on taxes included in a payment arrangement from 7% to 2.5% (previously 4%).
The reduced interest rate applies to taxes that are included in a payment arrangement through a request made between 21 April 2021 and 31 August 2021 (previously applied from 25 March 2020 until 31 August 2020);
The reduced rate of 2.5% will apply for as long as the payment arrangement is in force.
When the final tax liability exceeds the advance payments, an interest penalty applies at a rate of 2.5% (2014). If the taxpayer makes the payment for the amount exceeding the advance payments by the deadline for the tax return, no interest penalty applies.
For errors in a tax return, a fine of up to EUR 800 will be imposed depending on the seriousness of the errors. In the case of significant errors, a penalty of up to 30% of the correction may also apply.
Cases of fraud or other serious violations will result in additional fines and imprisonment of up to 4 years depending on the nature of the fraud or violations.
Effective from 1 May 2018, a tax increase penalty may be levied on a taxpayer by the tax administration if:
- A tax return or other notice, or any other information, document or statement submitted is incomplete or incorrect, or has been omitted entirely;
- The taxpayer has not submitted transfer pricing documentation or supplementary information within the prescribed time limits or has submitted documentation/information that is substantially inadmissible or incorrect;
- The taxpayer has not submitted a Country-by-Country report by the prescribed deadline or has submitted a report with essential omissions or errors;
- The taxpayer has unduly applied for credit for tax paid abroad;
The amount of tax increase penalty may range from 0.5% to 10% on the basis of additional income. Where the amount of tax increase penalty cannot be imposed based on additional income, the penalty may range from 2% to 50%. The tax increase penalty is limited to EUR 25,000 with a minimum of EUR 150.