The taxation of a business consists of tax payments and declarations:
Value added tax must be paid on sales.
Taxes withheld at source and health insurance payments (former social security contributions) must be paid from wages paid by companies.
A company’s income tax is determined as based on profit.
A company must disclose VAT and income taxation information to the Tax Administration.
In addition, entrepreneurs must pay personal income tax from their wages and dividends.
Starting up business operations
All those in the process of starting up business operations must notify the Tax Administration and the Finnish Patent and Registration Office (PRH). The information is usually submitted on a start-up notification form (Y form), on the basis of which they are entered in the Trade Register maintained by the PRH and the prepayment register, VAT register and employer register maintained by the Tax Administration. Finnish Business Information System (ytj.fi)
Notification and payment
Remember to take care of
Income tax return
VAT, employer contributions and other unprompted taxes are paid to the Tax Administration using the reference number for unprompted taxes. The payments can be declared and paid in, for example, the MyTax service (vero.fi). During registration, you will receive instructions on how to declare and pay the taxes.
File your returns regularly
By submitting a start-up notification, you register yourself in the above-mentioned registers maintained by the Tax Administration. Therefore, you should not send the notification until you actually begin operations or start acquiring goods or services.
Once you have registered in the VAT or employer register, you must file your returns regularly in accordance with your tax period. The returns must be filed even if there are no payments; for example, no wages have been paid during the tax period. Returns on unprompted taxes must be filed electronically, for example via the MyTax service.