Verokortin

Verokortin, in Finnish commonly referred to as verokortti, is a document issued by the Finnish Tax Administration (Verohallinto) that determines how much income tax should be withheld from a taxpayer’s earnings. Its primary purpose is to guide employer payroll withholding so that the correct amount of tax is collected during the year.

Issuance and contents: A person requests a verokortti for the coming year by providing estimated annual income and possible deductions. The verokortti states a withholding rate (veroprosentti) or, in some cases, a fixed monthly tax amount. Employers use the information on the card to calculate tax automatically from wages. If a person has several sources of income or multiple jobs, there can be more than one verokortti in use, with each employer applying the appropriate card.

Application and updates: Verokortti can be obtained online through the OmaVero service or by contacting the Verohallinto. If income or deductions change, the verokortti can be updated to reflect new estimates, helping to avoid large year-end tax differences. The card is typically tied to the calendar year and must be renewed as the new year begins, with a new estimate of income and deductions.

Impact and purpose: By defining the expected annual tax burden, verokortti helps distribute tax withholding evenly across the year. Failing to provide a correct card may lead to under- or over-withholding, resulting in a tax refund or a tax payment at year end.