verokausi

Verokausi, or tax period, is the defined time interval used by tax authorities to calculate and collect taxes and to determine the scope of a tax return. During a verokausi, income, deductions, credits and other tax elements are accounted for, and the resulting tax liability or refund is determined. The specific rules and deadlines associated with a verokausi can vary by country, tax type, and legal structure.

In Finland, the term is used by the tax administration to refer to the period for which taxes are assessed and reported. For individuals, the verokausi commonly corresponds to the calendar year, and the annual tax assessment typically concerns income earned in the previous year. Tax prepayments and final settlements are tied to this period, with deadlines set by the Finnish Tax Administration. For businesses, the verokausi may be the company’s fiscal year, which can differ from the calendar year. In addition, some taxes, such as value-added tax (VAT) and payroll taxes, may have their own reporting periods (monthly, quarterly or yearly) that relate to the business’s verokausi or to statutory rules.

Practical implications of verokausi include determining when income is taxed, when prepayments are due, and when tax returns must be filed. Changes to the verokausi, such as adopting a non-calendar fiscal year for a company, can affect accounting, reporting deadlines, and cash flow planning. Understanding the applicable verokausi is essential for accurate tax compliance and timely payments.