January 2020
Personal income tax return for 2019 – due dates and administrative tax penalties
Finland’s Tax Administration will send a pre-completed tax return form for 2019 to individual taxpayers in March-April 2020. The due dates for filing the tax return are 5 May, or 12 May, or 19 May 2020. The due date that applies to you is marked in the tax return form. If a taxpayer does not receive any tax return form, but is nevertheless liable to file a tax return, the due date will be 19 May 2020. Self-employed individuals will need to file their personal tax return by 2 April 2020. If a tax return is filed after the due date, but before the end of the tax assessment period, the fee for late return will be 50 euros for individual taxpayers. The end date for tax assessment is also marked in the pre-completed tax return form.
While the fee for late return (but before the end of the tax assessment period) is low, the tax increases imposed for other errors or oversights may be substantial and are mostly percentage-based in Finland. A tax increase will be imposed if, for example, a tax return is filed after the tax assessment period has ended, or if the tax return or information in the tax return is incomplete, or if the form has been incorrectly filled in. If, for example, an individual claims, by mistake, that a foreign tax credit is deductible in Finland (whereas it should have been claimed as deductible in the other country), a tax increase will be imposed.
The tax increase is usually between 2 and 10 per cent of an increase in taxable income. Such increase in taxable income may result from the taxpayer’s failure to report certain income, or from the taxpayer mistakenly claiming that non-deductible expenses are deductible in the tax return form. A tax increase may also be imposed even if, for example, the taxpayer paid taxes in some other country, but failed to declare in the Finnish tax return the income that would have been entitled to a full tax credit in Finland. In some cases, a tax increase is imposed based on an increase in the amount of taxes normally liable to be paid. In these cases, the tax increase may be between 2 and 50 per cent of the increase in the amount of taxes. Furthermore, if the taxpayer has erroneously declared non-Finnish earned income in the tax return form as capital income, instead of earned income (as a result of which the tax will be lower), a tax increase will be imposed on the basis of the amount of taxes. In some cases, however, the tax increase may be lowered or dismissed. It should also be noted that, in addition to the tax increases, late payment interest will also be imposed.
The imposition of a tax increase does not require any willful or negligent conduct by the taxpayer. In Finnish tax practice, tax increases may also be imposed even if an individual fails to understand the instructions for completing the tax return forms. Therefore, it is advisable to seek professional advice with respect to more complex tax affairs when filing your annual tax return.
While the fee for late return (but before the end of the tax assessment period) is low, the tax increases imposed for other errors or oversights may be substantial and are mostly percentage-based in Finland. A tax increase will be imposed if, for example, a tax return is filed after the tax assessment period has ended, or if the tax return or information in the tax return is incomplete, or if the form has been incorrectly filled in. If, for example, an individual claims, by mistake, that a foreign tax credit is deductible in Finland (whereas it should have been claimed as deductible in the other country), a tax increase will be imposed.
The tax increase is usually between 2 and 10 per cent of an increase in taxable income. Such increase in taxable income may result from the taxpayer’s failure to report certain income, or from the taxpayer mistakenly claiming that non-deductible expenses are deductible in the tax return form. A tax increase may also be imposed even if, for example, the taxpayer paid taxes in some other country, but failed to declare in the Finnish tax return the income that would have been entitled to a full tax credit in Finland. In some cases, a tax increase is imposed based on an increase in the amount of taxes normally liable to be paid. In these cases, the tax increase may be between 2 and 50 per cent of the increase in the amount of taxes. Furthermore, if the taxpayer has erroneously declared non-Finnish earned income in the tax return form as capital income, instead of earned income (as a result of which the tax will be lower), a tax increase will be imposed on the basis of the amount of taxes. In some cases, however, the tax increase may be lowered or dismissed. It should also be noted that, in addition to the tax increases, late payment interest will also be imposed.
The imposition of a tax increase does not require any willful or negligent conduct by the taxpayer. In Finnish tax practice, tax increases may also be imposed even if an individual fails to understand the instructions for completing the tax return forms. Therefore, it is advisable to seek professional advice with respect to more complex tax affairs when filing your annual tax return.
Legal Disclaimer
The information in this site has been prepared for general informational purposes only and it should not be used as a substitute for consultation with a professional tax, legal or other competent advisor. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, Effektiivi Oy is not responsible for any errors or omissions, or for the results obtained from the use of this information.
The information in this site has been prepared for general informational purposes only and it should not be used as a substitute for consultation with a professional tax, legal or other competent advisor. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, Effektiivi Oy is not responsible for any errors or omissions, or for the results obtained from the use of this information.
