ennakonpidätyksiä
Ennakonpidätyksiä refers to the practice of withholding a portion of payments made to individuals or companies and remitting it directly to the relevant tax authority. This mechanism is primarily used in Finland to ensure timely collection of income taxes. When an employer pays wages or salaries, they are obligated to deduct a predetermined amount as income tax before disbursing the net pay to the employee. Similarly, when certain payments are made to individuals or companies for services rendered, a percentage may be withheld and paid to the tax authorities.
The purpose of ennakonpidätyksiä is to spread the tax burden throughout the year, preventing a large lump