ennakkoveromaksu

Ennakkoveromaksu is the advance tax payment in Finland, paid to the Finnish Tax Administration (Verohallinto). It functions as a prepayment toward the estimated annual income tax for individuals and certain businesses. The obligation to pay ennakkoveromaksu depends on the taxpayer’s expected tax liability and the amount already withheld at source.

Calculation and schedule are determined by a prepayment decision (ennakkoveropäätös) issued by Verohallinto. The decision states the amount to be paid and the payment schedule, which is typically arranged as monthly installments or other regular intervals. The basis for the calculation can be the previous year’s tax assessment or the taxpayer’s current-year estimates. If the actual tax liability ends up lower than the anticipated amount, refunds or credits may be issued.

Employee withholding affects ennakkoveromaksu because wage tax withheld by an employer reduces the need for separate prepayments. However, individuals with significant non-wage income or underestimated withholding may still receive a prepayment obligation.

Non-payment and adjustments: If payments are late or insufficient, the Tax Administration may charge interest on the overdue amount and the final tax bill is adjusted when the annual tax return is filed. Overpayments are typically refunded or credited toward future prepayments.

How to pay: Payments are made electronically, for example through online banking or the Tax Administration’s payment portal. Taxpayers can review their ennakkoveropäätös, payment schedule, and current balance via Verohallinto’s online services.

See also: ennakkovero, Verohallinto.