veronpidätyksiä

Veronpidätyksiä, often translated as withholding tax or tax deduction, refers to the practice in many tax systems where an employer is obligated to deduct a portion of an employee's wages or salary before paying the remainder to the employee. This deducted amount is then remitted directly to the relevant tax authority, typically the government, as an advance payment of the employee's income tax liability for that tax period.

The primary purpose of veronpidätyksiä is to ensure a steady flow of tax revenue to the government throughout the year, rather than waiting for individuals to pay their full tax liability once a year. It simplifies tax collection for the authorities and helps individuals avoid a large, potentially burdensome tax bill at the end of the tax year. The amount withheld is usually an estimate based on factors such as the employee's income level, marital status, and the number of dependents, often calculated using predetermined tax tables or formulas provided by the tax authorities.

Employees typically receive a statement, such as a payslip or a year-end tax certificate, detailing the amounts of gross pay, deductions, and the net pay received, as well as the total amount of tax withheld. At the end of the tax year, individuals are usually required to file a tax return, where their total income and actual tax liability are calculated. The veronpidätyksiä made during the year are then credited against this final tax liability. If the amount withheld is more than the actual tax due, the individual is entitled to a refund. Conversely, if the amount withheld is less, the individual will owe additional tax.