Instructions for completing the income tax return – limited companies and cooperatives

Give details on company shareholders and any loans or other payments to them and their family members.

If there are more than 10 shareholders, only report those who hold 10 % or more of the company shares. You do not need to give details if each shareholder holds less than 10 % of the company.

However, if there are any beneficiaries of shareholder loans among them you must always give details on them and their family members, regardless of the size of their holding. Additionally, an annual information return must be submitted in order to give details on a shareholder loan if the shareholder, the shareholder's family member, or these persons together, own at least 10% of the company shares, directly or indirectly, or if they hold a corresponding share of the votes.

Illustration: The husband, Mikko, owns 5% and his wife owns 10% of the corporate stocks. There are nine other people who also own some shares in the company, but everyone of them has less than a 10% holding. In 2016, Mikko borrowed €10,000 from the company. In 2024, Mikko’s wife received €5,000 as a shareholder loan, as well. When this tax return is submitted, both Mikko’s and his wife’s information must be included in it. This tax return must also contain the amounts of the married couple’s loan balances on the end date of the company’s 2024 accounting year. You must also file an annual information return in order to give details on Mikko’s wife's loan for which the date of receipt is in 2024. You must do so because together, the husband and wife own more than 10% of stock.

Please also indicate how many of its own shares your company owned at the end date of its accounting year. You can indicate the number of company-owned shares under “Changes in subscribed share capital after the close of the accounting period”.

Detailed instructions:

Do not fill in any payments for which your company, being the employer, submits an annual information return or submits reports to the Incomes Register. An exception from the above rule is the reporting of shareholder borrowing: you must account for all shareholder loans when submitting this income tax return, and at the same time, certain loans must additionally be reported on an annual information return.

Name: Fill in the shareholder’s name even if he or she had not received a shareholder loan from your company or received other types of payments. In addition, give the shareholder's family member’s name if a loan has been issued or a payment made to a family member of a natural person who is a shareholder, such as spouse, child, parent.

Personal identity code or Business ID: Enter the shareholder’s or the family member's personal identity code if a payment was made or a loan was given to family member(s). Fill in the person’s Business ID if the person has one (instead of the Personal identity code).

If there are shareholders who are citizens of other countries and have no Finnish personal identity codes

• if you are filing this return online or in MyTax, enter DDMMYY-UUUU (or date of birth-UUUU) as the personal identity code
• if you are filing this return online or in MyTax, enter 0000000-0 as the Business ID code
• and if you are filing this return on a paper-printed form, leave the space blank.

If a shareholder is a legal person, enter its Business ID. When giving the details of a legal person that is a shareholder, include only the legal person’s name, Business ID and how many shares it holds.

Number of shares: Please indicate how many shares they hold, even if no loans have been issued or other payments made to the shareholder.

Rental payments: Fill in the total of rent paid to a shareholder or family member during the accounting year (accrual basis).

Interest payments: Fill in the total of interest payments made to a shareholder or family member during the accounting year (accrual basis).

Sales and other transfers of property: Fill in the total of payments made to a shareholder or family member during the accounting year (accrual basis) because they have sold something to your company, including real estate property, residential or other apartments, securities and motor vehicles.

Other payments: The total of other payments made to a shareholder or family member, including commissions paid for designating a shareholder-owned asset as a security.

Shareholder loans: If a shareholder has borrowed money from your company, enter the loan balance as it is in the balance sheet. Give details on the shareholder loans subject to reporting on annual information returns and tax treatment as capital income, and on the shareholder loans for which no annual information return is necessary.

If your company has more than 4 shareholders: If you are filling out Form 6B on paper, enclose Form 72 to give the shareholder details and the information on any payments made to the shareholders. If you are submitting Form 6B online, you do not have to complete Form 72 at all.

Enter details on such company-owned apartments and real estate units that a shareholder or their family has used as their home during the accounting year. “Majority shareholder” refers to a person who is in a managerial position in your company and holds over 30% by him/herself or over 50% together with their family of its shares or votes.

Companies must fill in this section to give details on the persons living in the dwelling during the company’s accounting year. The shareholder, in turn, must give details on the dwelling that the shareholder has utilised for personal purposes to live there, or to have their family members live there, during the calendar year.  Shareholders have these options for submitting information on living in a company-owned dwelling:

• Log in to MyTax to provide the information.
• Complete (section 4 of) Form 13, Account of shareholder loans and the split between earned and capital income for dividends.

If there is other company-owned property (such as a summer cottage), give details on who has used them and how. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

What is the value of the property?

Enter the dwelling’s value as it is in this tax return's Calculation of net worth, under “Assets”. If only part of the property (not all of the rooms) was used by the shareholder or family, enter a value corresponding to this part as the value of the residential property.

For purposes of income taxation, real estate units must be valuated at their undepreciated acquisition cost or at tax value, whichever is higher.

Correspondingly, apartments in housing companies must be valuated at their undepreciated acquisition cost, or at the latest approved taxable value for purposes of wealth taxes (which means the 2005 value because the Finnish tax system has not had wealth tax since the year 2005).

If your company has bought the apartment in 2006 or later, a comparison is not performed; instead, enter its undepreciated acquisition cost. If a reserve in the balance sheet has been utilised when paying for the apartment, the amount by which your company’s replacement reserve had diminished must be added to the apartment’s value.

In the case of a shareholder-entrepreneur, the Tax Administration assesses the shareholder’s personal income taxes by treating part of the dividend income received by the shareholder-entrepreneur as capital income, and the other part as earned income. The number of shares held is part of this calculation. However, the apartment’s value is subtracted from the value of company shares.

If you are not submitting the tax return in MyTax:

• If you have many units of company-owned real estate, perform a comparison on Form 18.
• Perform a comparison on Form 8A if your company owns an apartment in a housing company. If more than one majority shareholder or family have been using more than one company-owned properties for living, enclose a free-text account on an additional sheet of paper.

If more than half of your company’s (cooperative’s) stock, share certificates, shares, etc. have changed hands during the tax year, indicate the tax year when this happened.

If the changes among owners or shareholders took place gradually, during several years, indicate the tax year before or during which such losses occurred that are not deductible due to changes in ownership. 

Indicate that tax year also if the ownership of more than half of the shares was changed indirectly. Indirect changes are taken into consideration if one shareholder owns at least 20% of the company, and a majority of that shareholder’s shares changes hands, i.e. is transferred to another owner.

In addition, you must enclose a free-text account to illustrate the changes and the points in time when they have taken place. If you are a user of MyTax, you can add enclosures in the Financial statements stage.

Illustration: One individual shareholder owns all the 100 shares of a company. He sells 50 of them in 2022, and a little later, in 2023, he sells 1 share. Taking account of the changes in ownership in 2022 and 2023, it is established that more than half of the corporate stock has changed hands. Now, we also take account of the fact that the company made losses every year from 2019 to 2023.

In this example, you must enter “2022” as the tax year when the change of ownership happened. In addition, enclose a free-text account to explain the changes.

The company is not allowed to deduct the losses from 2019−2022 from its profits in tax year 2024. During the loss year 2023, only one share was transferred, so the company may deduct its loss for 2023 from its profits for 2023. In other words, the company, having made a profit in 2024, may deduct the loss made in 2023 for purposes of its 2024 taxation.

Note: there may be a change in ownership although the shareholders remain the same. The proportions of ownership may be altered when a company conducts an issue of new shares, but only a few of the old shareholders sign up to purchase them. As a result, the shareholders now have different proportions of ownership from what the proportions used to be.

Changes in shares of ownership that are based on an inheritance or a will do not need to be reported.

Read more about how business loss can be deducted.

If your company or corporate entity has agreed to distribute dividends, and if the year’s balance sheet and other financial statements were adopted, you must give details on the dividends.

If the company’s profit distribution is decided only after you have submitted this income tax return to the Tax Administration, you must inform the Finnish Tax Administration of the distribution before one month has elapsed from the decision date.

If you are a user of MyTax, you can add information and enclosures in MyTax later. If you submit the return through one of the other channels for e-filing, use the same electronic channel when you add information and enclosures later. If you submit the return by filling in the paper form, complete Form 63 as your enclosure in order to give the above details, and enclose a photocopy of the company’s minutes on its annual general meeting of shareholders.

You can use any electronic filing method for sending the tax-return information, up to the date when the Tax Administration has finished the assessment process. If you are a user of MyTax or a user of Vero API the technical interface, you can give details on the distribution of profits before 15 months have elapsed from the end date of your company’s accounting year, and in the other e-filing channels before 10 months have elapsed from the end date of your company’s accounting year. If it is necessary for your company to give details regarding profit distribution when 15 months have already elapsed, you must complete and submit a paper form with enclosures (Form 63 with a full or partial photocopy of the minutes of the annual general meeting). 

When you send the financial statements and their enclosures that will be made public by the Trade Register office, you should refrain from allowing confidential information (such as personal identity codes) to show on them.

Read more on submitting a report only to the Tax Administration about additional dividends.

You are required to include the details on dividend distribution in the company’s tax return even if you had given these details to the Tax Administration through MyTax beforehand, i.e. before you started preparing the company's tax return. Please note that if your company also carried out an additional distribution of dividends, you cannot give details on it until you have given details on the company's original distribution of dividends. In general, you cannot make changes to the recorded information concerning dividend distributions until you have submitted the company's tax return. 

A specific annual information return must be submitted for dividends or surplus distributed to shareholders.

Dividends and surplus to be distributed, or reserves of unrestricted equity – detailed instructions

• Fill in the “date when payment begins” i.e. the first day when shareholders can receive the money.
  • If you are filling out Form 6B on paper, and your shareholders have the opportunity to withdraw the dividends or surplus in several instalments, submit a separate enclosure to give details on this arrangement. In this case, you should enter the first instalment’s date as the “date when payment begins”.
• The total distributable dividends or surplus is the amount that your company agreed that will be paid out to the shareholder’s as the tax year’s (ordinary) distribution.

Also include any dividends or surplus paid out to shareholders from an unrestricted reserve of retained earnings.

Under Companies Act, it is permissible to distribute profits for an accounting period that is still ongoing, and also to distribute dividends for the previous accounting period, when a new financial statement is not yet complete or audited. For purposes of tax assessment, these dividends, too, are seen as distributed for the accounting period closed last. However, these dividends are not entered in this line; instead, you must write up a separate free-text enclosure to give details on them.

If a consolidated enterprise has distributed dividends from one subsidiary company to another (or to parent) in advance, the distributing company must enter the amount of dividends here according to its advance decision i.e. the amount agreed by its shareholders’ meeting. Read more about the tax treatment of dividends and surplus distributions.

Dividends paid by a substituting entity are not entered on your company’s income tax return. If substitute dividends concern you, you must submit an annual information return to give the required details on them.

In situations involving corporate restructuring, it is worth noting that a divided, de-merged company can no longer distribute dividends after the restructuring, because the company no longer exists. See the guideline "Corporate restructuring and taxation – demergers" for more details on how a company, established by division, can distribute dividends before its shareholders’ meeting has adopted its first financial statements.

• Enter the part of the money under “Distributed from unrestricted equity fund” that has been ready for receipt by the shareholders during the tax year.

Enter information on the amounts that, as agreed by corporate shareholders, will be distributed from the company's unrestricted equity fund (Chapter 13, §1.1, Companies Act; Chapter 16, §1.1.1 of the Act governing cooperative societies). This line is only for the type of distribution that is considered an actual transfer of assets. You also need to submit an annual information return on capital refunds. 

Do not enter the amount of dividends or surplus in this field; it is the previous entry (Total amount of distributable dividends or surplus). 

Read more:

• Dividends and surplus based on work effort
• Guide on the “Taxation of cooperative societies and their members” – Osuuskunnan ja sen jäsenen verotuksesta, in Finnish and Swedish).

Company redeemed/purchased/sold its own shares

Tick this box if, after the accounting year ended, your company has redeemed or otherwise bought, received, acquired its own shares; or if your company has disposed of its own shares.

On the paper form, you can find this in the “Changes in the subscribed share capital after close of accounting period” section.

Quantity of own shares held by the company at the end of the accounting period

Note: the field for “quantity of own shares” is only for the part that your company itself has in its treasury. It means how many shares are owned when the accounting year ended – it does not mean the total corporate stock.

On the paper form, you can find this in the “List of shareholders” section.

This section is for any changes to your company’s share capital that have taken place when its accounting year had already ended.

If your company capital was increased or if it was lowered, please indicate whether you want the Tax Administration to use the subscription price as the new stocks’ mathematical tax value. The Tax Administration applies the mathematical value of one new share on the relevant calculations when dividends paid to the shareholders are divided into capital income and earned income. If you do not indicate that you want the mathematical value to be the subscription price, your company share's nominal or book value will be the Tax Administration’s mathematical value of one share.

The calculation of the comparison value of the share for 2020 will also take account of:

• Any changes in share capital that have occurred during the next accounting period, soon after the closing of the 2020 period.
• Any purchases, redemption and disposal of the company's own shares.

Please also inform the Tax Administration of any changes that may occur after you submit this tax return. Your deadline to send any additional materials to ensure completion of the tax return is in one month of the date of the change.

If you are one of the above, you are not expected to complete the Calculation of taxable income section including the summary of taxable profits or allowable loss. In the same way, you do not have to fill in all the field of the Calculation of net worth.

If you are a user of MyTax, the relevant fields will open up automatically on your screen.

If you are not submitting this return in MyTax, enclose Form 77 to report business profit or loss. See the instructions for completing Form 77:

• Form 77 with instructions is found on tax.fi under Forms (available in Finnish and Swedish, link to Finnish)

You only have to fill in the totals of assets and liabilities. The difference between the two will show under Positive net worth or alternatively, under Negative net worth. MyTax performs an automatic calculation to arrive at Net Worth.

Indicate whether your company conducts activities other than business exclusively. Other activities include rental operations and trading with stocks and securities. Previously, the income from the above activities was taxed as being part of the personal source of income.

Fill in your company’s taxable income and tax-deductible expenses in the Tax accounting column of this section. You will find an Accounting column on several of the lines below. The bookkeeping values of the expense items on these lines are not necessarily the same as their tax-deductible values. However, even if some of your expenses’ book and tax values were equal, you should still fill in both the Accounting and the Tax accounting columns.

Enter the euros and the cents; do not round out the amounts. The default rule is that any revenue will increase profit and any expense will reduce it. For this reason, plus and minus signs are not necessary. However, if you enter an amount that does not follow the logic of the above default rule, you must enter a minus sign (-) before the amount.

Illustration 1: A corporate taxpayer reports a net sales figure that is negative. In this case, enter a minus sign in front of Net sales (the first line under “Business income”).

Illustration 2: A company has received a large refund of its leasing fees, which makes the balance of this expense item the inverse of what it usually is. You must enter a minus sign in front of the entry in Leasing costs (this line is found under “Business expenses”).

Enter the net sales as recorded in your company’s books.

Net sales (=turnover) comprise the sales income from your primary operation, minus any discounts granted, minus VAT, and minus any other taxes that depend on sales volumes.

If your net sales contain any received dividends, you must report them under Receipts of dividends and profit surplus (under Financial income), and subtract them from the net sales figure.

Enter any production and consumption for your own use as it is in your company’s books.

Fixed assets include any corporate stocks that your company owns in order to serve a permanent purpose of use directly related to its business. Corporate stocks are treated as being part of the business source of income when their main purpose of use is your company’s business activities. From this, it follows that if the company is a passive shareholder of another company’s shares, it does not necessarily mean that they serve a business purpose. Accordingly, this section is only for any sales, transfers, disposals and conveyances of corporate stocks that had been part of your company’s fixed assets and related to business.

Enter the total amount of capital gains from the selling of shares that had been booked as part of your fixed assets, and your gains from liquidations, as they are recorded in your accounting books. Any taxable capital gains from selling shares booked among your company’s fixed assets, and taxable gains from liquidations, also when they are related to partnership interests, must be entered in the Tax accounting column.

Complete Forms 71A and 71B to itemise the above capital gains and gains from liquidations. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• 71A – Tax-exempt capital gains and capital losses that cannot be deducted in taxation
• 71B – Taxable capital gains and tax-deductible capital losses

Normally, gains received from the selling of shares booked as fixed assets are exempted from taxes (however, they are taxable if housing-company and real-estate-company shares were sold) if the company had held, for more than one year, at least 10% of the company the shares of which were sold, or at least 10% of the company that was liquidated.

This means that gains from the selling of shares in housing companies and real-estate companies are taxable, gains from the selling of corporate stock held for a shorter time than one year are taxable, and gains from the selling of corporate stock when your ownership interest in the company had been below 10% are taxable as well. If your company is an investment firm in the equity-investment business, its receipts of capital gains are always taxable.

The selling price of corporate stock that can be sold exempt of tax is subject to taxation where the book capital gain (difference between the selling price and undepreciated purchasing price) is due to one of the following reasons:

• Write-off of the stock’s value, approved by the tax authority in a previous assessment (under § 42 of the Act on the taxation of business income)
• Provisions or public subsidies, which had been subtracted from the purchase price
• Deductible capital loss, caused by the sale of a group company’s corporate stock from one subsidiary to another

Read more: “Tax treatment of the sales of shares that are part of corporate fixed assets” – Yhteisön käyttöomaisuusosakkeiden luovutusten verokohtelu.

This field is for any capital gains that your company has received from the selling of buildings or real estate that had been booked among the company’s fixed assets. Complete Form 71B to report the capital gains and transfer the sum total to Form 6B, this field. It may be that there are no such gains subject to tax remaining, when you have subtracted previous years’ capital losses (losses formed in accordance with the act on income tax (TVL)). In this case, leave this field blank.

If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• 71B – Taxable capital gains and tax-deductible capital losses

Read more about how capital losses from previous years should be accounted for.

This field is for your company’s capital gains for other fixed assets than corporate stocks or shares.

Examples of the capital gains reportable in this field include:

• your gain from the sale of a building,
• your gain from the sale of a smaller property item
• your gain from the selling of motor vehicles that you had used in a transportation business
• your gains from any selling of items with a useful life of no more than 3 years

If the sale (or other transfer) is not entered in the books with a P/L effect (the “gained” amount is instead entered in the depreciation account as a difference between book and tax depreciation), enter it in the “Other tax-exempt income in the profit and loss account” field, and enter the corresponding depreciation difference in “Depreciation and reductions in value of fixed assets”.

Provided that your company has booked them as part of its revenue in the P/L account, this field is for grants, supplements and subsidies relating to business activities (from the Ministry of Economic Affairs and Employment, Ministry of the Environment, TEKES, the state, local municipality, etc.).

This line is for other taxable business revenues (other than the above) included in the year’s profit-and-loss account.

Examples:

• Gains received from a sale of a business unit
• Received refunds of leasing fees
• Received insurance indemnities, received damages
• Rental income from any real estate property that your company rented out
• Rental income from spaces used for employee recreation
• Received fees for any office services that you have supplied

The question appears on the MyTax screen. Please fill in the Receipts of dividends and profit surplus field to give exact details.

This line is for received dividends, profit surplus and other distribution of profits, as recorded in your company’s accounting books. This amount should go into the Accounting column. In addition, you must enter any advance receipts of dividends as if they were regular dividends. If your company has received a refund from a cooperative society, which is a tax-deductible item for the cooperative society paying it, enter the amount here. Such a refund is formed when a cooperative society distributes goods to its members during the accounting period; or when a cooperative society transfers goods, obtained from the members, to a third party.

The following items are also seen as distributions of profit:

• Profit shares and interest from a savings bank
• Interest on the guarantee capital of a mutual insurance company or an insurance association

Complete Form 73 to break down the dividends and surplus you received. However, if all the dividends/surplus your company received are fully exempt from tax and sourced in Finland, you do not have to complete Form 73.

The Tax accounting column is for the taxable part. It must be the same amount that you had entered on Form 73 as your receipts of dividends and surplus subject to tax.

If you are an unlisted company receiving dividends from a listed company of which you own less than 10%, the entire amount received is subject to tax. It is also fully subject to tax for your company if the distributing company can treat the dividend payments as a deductible cost. Correspondingly, receipts of a cooperative society’s refund are fully subject to tax, as well, if the cooperative society that pays the refund is able to treat it as a deductible cost.

In addition, you must enter any REIT-company dividends that you have received because the entire amount is taxable income for you.

If your company has a Controlled Foreign Company and received dividends from it, complete Form 74 to calculate the part subject to tax. Then include that amount in this field. For more information, see Share of Controlled Foreign Company income.

Refer to the instructions for completing the form:

• Form 73 – Specification of dividend income and other items related to profit distribution

Read more about the tax treatment of dividends and surplus distributions.

Read more on the profit distributions and surplus distributions of cooperatives.

Fill in any receipts of interest that your company has received from Finnish and foreign debtors that belong to the same enterprise group as your company.

The intra-group debt may be direct or indirect. When a contract between two group companies is in force, specifying a lender and a borrower, it is regarded as “direct”. To belong to the enterprise group together with other companies, i.e. an associated relationship, means that one of the parties to the loan contract has controlling power over the other party, or alternatively there is a third party in existence, which has control over both of the parties to the loan contract. The Finnish legal provisions laying down the criteria of “controlling” power are found in the act on assessment procedure (section 31, subsection 4). 

The lending of money is treated as an indirect group-company loan if your company has given a loan to an external party (not a group company), and either one of these 2 conditions is fulfilled:

• The group company or group undertaking has a receivable from the external party that has lent out money, and this receivable is connected to the loan;
• The collateral for the loan is a receivable that would be paid to a group company or group undertaking.

Not all interest your company may receive from indirect debt, under § 18 a of the act on the taxation of business income, is necessarily entered in the books as interest received from companies belonging to the same group. For this reason, the amounts of interest to be entered here may deviate from the corresponding receipts of interest in the books (from companies belonging to the same group).

Additionally, any other revenues that are not interest, such as compensation for the use of external funding and compensation for efforts to obtain financing, must be entered in this field.

This field is for any receipts of interest from companies that are associated or affiliated with your company (within the meaning of Chapter 1, §7, Accounting Act).

It is additionally for any other revenues that are not interest, such as compensation for the use of external funding and compensation for efforts to obtain financing, and were received from associated or affiliated companies.

Enter the interest your company received from bank account and bank deposits, etc.

This field is also for any other revenues that are not interest and were received from parties other than the above, such as compensation for the use of external funding and compensation for efforts to obtain financing.

Enter the amounts received, as they are recorded in your company’s books, into the Accounting column. Shares of profits, received from a partnership/consortium are tax-exempt income.

However, part of income shares (referred to in §16 and §16a, act on income tax) is subject to tax in the hands of the shareholders of the partnership/consortium.

The parts subject to tax must be entered in Tax accounting. Enter the income shares of domestic consortia, which are taxable under §16, and enter also the foreign and European profit shares (European Economic Interest Grouping (EEIG)) referred to in §16a, act on income tax.

If you are not yet aware of any profit-shares that are subject to tax, leave this space blank. After you have received further information on your company’s income, submit that information as an addition to your tax return without delay. Punitive tax increases may be imposed to companies that have neglected to report their income on time.

This line is for any capital gains that result from the selling of financial assets, such as the gains from the sale of securities that you have recorded among your company’s financial assets.

Enter your income derived from insurance policies with a capital-redemption clause, form life insurance policies containing a saved deposit, and from pension insurance contracts (§ 35.1 and § 35 b of the act on income tax). The amount must be entered into the Accounting column.

Enter the part of the above income that is subject to tax in the Tax accounting column.  Tax must be paid on received amounts from a capital redemption policy, or from a life insurance policy, that are part of the company’s business source of income, and for which there is no interest income at a fixed rate. Such a received amount may be an insurance indemnity or an amount paid to your company because of a repurchase. Your revenue subject to tax is the proportional part of the received amount that equals the yield from the savings deposit at the date of receipt. If your company received this type of revenue, it is treated as income for the ongoing tax year when received.

In addition, if you receive revenue from a life insurance policy containing savings, or from a capital redemption policy, or from a pension insurance contract as referred to in § 35 b of the act on income tax, that item of income is subject to tax, and its amount must be calculated as laid down in § 35 b of the act.

If you have a capital redemption policy with a fixed interest rate as agreed, you receive an annual revenue consisting of the interest plus an additional credit if applicable. This interest and credit are treated as income for the tax year of accrual.

Read more about the tax treatment of capital redemption policies.

This line is for other financial income such as foreign-exchange rate gains.

Enter the following revaluation gains as they are in your books into the Accounting column:

• Gains related to your company’s financial assets: if there has previously been a write-down in your books, but the current fair market value of the financial asset, at the end of the tax year, is greater than the remaining value after the write-down, calculate the difference between these 2 values and enter it here.
• Gains related to your company’s current assets: if there has previously been a write-down in your books relating to the purchase price of merchandise, etc., but the current fair market value of these current assets is greater at the end of the tax year than their remaining value after the write-down, calculate the difference between these 2 values and enter it here. The end-of-year values to use are the probable purchase price at year end, the probable selling price at year end, or the “net realizable value” within the meaning of the IAS, international accounting standards.
• Gains related to your company’s fixed assets: if you had made depreciation expense entries in your company’s books, but it turns out that the fixed assets’ fair market value at the end of the tax year is significantly higher than their residual undepreciated acquisition cost in the books, calculate the difference between the fair market value and the book value in order to enter it here.
• Revaluation gains, connected to assets other than above.

Calculate the part subject to tax of the revaluation gain, and then enter it into the Tax accounting column (§ 5 a of the act on the taxation of business income). In most cases, revaluation gains are fully subject to tax, i.e. taxable income for your company. However, revaluation gains are tax-exempt if, in the year when the taxpayer had reported it, the tax authorities had not approved the write-down as a deductible expense.

Enter any received payment of intra-group subsidy or contribution.

Complete Form 65 to specify. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• 65 – “Form for itemisation of paid and received group subsidies” – Selvitys annetuista ja saaduista konserniavustuksista.

For the Accounting column: the reversal (=decrease) of mandatory and taxation-based reserves as they are in your books.

For the Tax accounting column: the taxable part of the above. Reversals related to the following balance-sheet reserves are subject to tax

• Reversal of a replacement reserve.
• Reversal of a warranty reserve of a company operating a construction, shipbuilding or metal industry business for the part that exceeds the expenses arising from warranty repairs.

Complete Form 62 to provide a breakdown of the reserves that are in your books. If you submit your income tax return in MyTax, fill in the Depreciation and reductions in value of fixed assets section (in the Business costs stage).

This line is for reporting the share of a Controlled Foreign Company's profits that your company has received. If losses had been made, deduct your company's share of the CFC's losses from five previous years, if any, from this amount.

Complete Form 74 to give the details of every CFC and calculate your shares of the profits or losses, separately for each one of the CFC’s.

If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• Form 74 – Calculation of CFC income

A CFC is defined as a corporate entity, placed under the ownership and control of Finnish tax residents in its foreign country of residence, and liable there to less than 3/5 of the corresponding Finnish level of income taxation. A permanent establishment of a foreign company located in a country of the above category may also be regarded as a CFC. However, a company that has its tax residence in the European Economic Area or in a tax-treaty country is not considered a CFC if Finland has agreed on information exchange with the country’s tax authorities. In this case, a further requirement for not being considered a CFC is that such a company must actually be located in its country of tax residence.

Your company’s receipts of CFC income is subject to Finnish tax if:

• Your company holds at least 25% of the stock, either alone or together with associated companies;
• Your company is entitled to receive at least 25% of the yields of the controlled foreign company’s assets.

If the CFC is a subsidiary or an affiliate, as defined in the Accounting Act, enclose its financial statements for this accounting year and the previous accounting year. Select “Tax Administration – Other attachment” as the type of enclosure.  If you are a user of MyTax, you can add enclosures in the Financial statements stage. Read more:

• Taxation of income from controlled foreign companies

The “other” category of property or assets covers any company-owned property, which a nonbusiness activity is using, for an income-generating purpose, and also any company-owned property that it does not use for production of income at all. In other words: the “other” category of property is any property or assets that are not part of the company’s financial assets, current assets, investment assets or fixed assets.

Examples may include items that were connected to the company’s personal source of income before tax year 2020. Assets connected to the personal source of income may be shares of a holding company that makes passive investments in the corporate stocks of big companies, real estate property and housing-company apartments that had been purchased “as an investment” and are now rented out to outside tenants.

This field is for the capital gains derived from any sales (transfers, conveyances) of assets in the “other” category of assets and property. Complete and enclose Form 71B to itemise the capital gains received. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• Form 71B – Taxable capital gains

It may be that there are no such gains subject to tax remaining, after previous years’ capital losses have been deducted (losses formed in accordance with the act on income tax (TVL)). In this case, leave this field blank.

Further information

• “Corporate tax assessment no longer based on different sources of income” – Eräiden yhteisöjen tulolähdejaon poistaminen – TVL-luovutustappiot (guidance in Finnish and Swedish).

This field is for any other taxable income not recorded in the profit-and-loss account.

Such revenues may include the differences that are caused by differing regulations on periodization of accounting and of taxation. The property development business is an example of a sector where these differences may occur. Read more: “The tax treatment of companies in the property-development business” – Perustajaurakointiliiketoiminta verotuksessa (guide in Finnish and Swedish).

Note: any profit your company may have made by selling some of its own stock is not treated as taxable income. Do not enter it in this field.

Enter the total of Tax accounting in this line: all the revenues that are subject to tax.

Enter any tax refunds that you have recorded as revenue in the P/L. Include any interest that you may have received on the refunds. Such interest is treated as tax-exempt income.

Enter the amount that your company has received, either from the State of Finland or from the Finnish Cinema Foundation.

This field is for any capital gains from the sale of moveable assets subject to wear and tear, when the transaction was booked under the principle of indirect income recognition (as described in § 30 of the act on the taxation of business income).

This line is for reporting the total of other tax-exempt revenues that are recorded in your company’s P/L. Examples of such revenues include the profit that results from a merger arrangement (§ 52b of the act on the taxation of business income).

Connection fees charged by a corporate entity that maintains an electric power network, a telecommunications, water supply, or district-heating network, are tax-exempt revenues when refunded to the corporate entity. However, similar payments for signing may also be transferable. If your corporate entity has charged transferable connection fees, they are treated as taxable income and you should not include them in the amount on this line.

The lines below are for the amounts, or impact of changes, as follows:

• Costs of the goods sold during the accounting year
• Purchases during the accounting year
• The change in the inventory of finished goods and work-in-progress (either an increased or diminished inventory balance)

Enter the expenses that your company has paid for the services needed for your production.

Enter the expenses booked under wages, pay, fees, pension expenses and related social security.

Indicate the planned depreciation expenses and depreciation differences that you have included in the P/L as expenses.

The Tax accounting column should have the depreciation expense, permitted by the act on the taxation of business income (EVL), including “additional” and “specific tax-relief” depreciation.

• This also includes any depreciation from previous years that have not been deducted for tax purposes (“reserved depreciation expenses”) and which you are claiming now.
• Complete Form 12A to provide a breakdown of your depreciation that was not allowed or deducted in previous years. You must also itemise the depreciation for any year when your company does not use its right of depreciation fully, i.e. creates a new expense that has not been deducted for tax purposes (“reserved depreciation expenses”).

Although it may be permitted under international accounting standards, no depreciation expenses are acceptable against any assets that you use under a leasing contract. Do not enter such expenses in the Tax accounting column.

In general, when these instructions refer to “depreciation”, it means the depreciation expense that is deductible for tax purposes (§24, §30–§34 and §36–41, act on the taxation of business income, EVL). Read more about depreciation deducted as a lump sum, and periodised expensing across several years. 

First enter depreciation in the Accounting and Tax accounting columns in MyTax. After that, you can break down the expenses into smaller parts.

If you are not submitting the tax return in MyTax, enclose Form 62 to itemise your depreciation expenses.

• Enter the total amount of planned depreciation and changes in depreciation differences in the Accounting column. This total is available on a completed Form 62.
• Enter the deductible part of the expenses in the Tax accounting column, i.e. the deduction under the act on the taxation of business income, which shows on Form 62. You can combine parts A, B, C, D, E and F of Form 62 – the statutory depreciation expenses, deductible under the act on the taxation of business income, the additional depreciation, and tax relief depreciation, if any.

Refer to the instructions for completing the form:

• Form 62: Specification of reserves, revaluations and depreciation of fixed assets
• Form 12A: Specification of unused tax depreciation

Enter the booked written-down values of fixed assets into the Accounting column. This means the write-down that you did not report under “depreciation” above.

Then, enter the part of the reductions in the value of permanent fixed assets that is deductible under § 42, act on the taxation of business income, into the Tax accounting column. The deductible part can only include:

• Write-down against the value of securities other than corporate stock
• Reduction in the value of permanent fixed assets other than land, when the fair market value of the asset/property at the end of the tax year is significantly lower than its undepreciated residual acquisition value.

Do not enter any other write-downs and reductions of values here.

Accounting column: All entertainment expenses recorded in your accounting books.

Tax accounting: Enter the deductible portion – half (50%) of the expenses.

Read more about “Entertainment expenses in income taxation” – Edustusmenot tuloverotuksessa (in Finnish and Swedish)

Accounting column: All the donations that your company has paid out, as recorded in the books.

Tax accounting: This line is for the deductible part.

Only reasonable donations to a non-profit corporation are deductible, and generally they should be granted for a local purpose or a purpose close to the donor’s sector of business.

Under certain conditions, corporate entities may also deduct some donations that are granted for the purpose of conserving cultural history or promoting science or arts, and that amount to at least €850.

Fixed assets include any corporate stocks that your company owns in order to serve a permanent purpose of use directly related to its business. Corporate stocks are treated as being part of the business source of income when their main purpose of use is your company’s business activities. From this, it follows that if the company is a passive shareholder of another company’s shares, it does not necessarily mean that they serve a business purpose. Accordingly, this section is only for any sales, transfers, disposals and conveyances of corporate stocks that had been part of your company’s fixed assets and are connected to company business.

Accounting column: Enter the book values of any capital losses from the selling of corporate stock and shares (part of your fixed assets) in partnerships and consortia, including losses resulting from their liquidation.

Complete Forms 71A and 71B to itemise these losses as follows:

• Form 71A is for the items that have no effect on taxation. Examples of these loss items are any tax-exempt losses made when selling, and losses made due to liquidations, and the losses of the same kind that are non-tax-deductible.
• Form 71B is for taxable capital gains from selling and from liquidations, and correspondingly, for tax-deductible capital losses and liquidation-related losses. The deductible capital losses can be either unlimited or they may only be deducted from capital gains during the tax year and the 5 years following.
• Capital gains and losses relating to partnership interests, connected to selling or to partnership liquidations, must also be itemised on Form 71B.

Tax accounting: Enter the above capital losses and liquidation losses that are deductible with no restriction. This would include:

• Capital losses resulting from the fixed assets of an entity that operates an equity-investment business.
• Losses resulting from the selling of shares in a housing company or real estate company and equivalent, if the sold shares had been part of the assets that serve your company’ business. Do not provide a detailed breakdown on Form 71B relating to the above losses. However, enter the sum of the loss on Form 71B under “Capital and liquidation losses deductible in business during the tax year”.

In some circumstances, you can deduct a capital loss only from the taxable capital gains, received during the tax year, for selling shares that had been booked among your company’s fixed assets, or from similar taxable capital gains you will receive during the 5 years following the tax year. Such capital loss, deductible from capital gains, is deducted already when calculating the taxable portion of capital gains, reported in 2 – Other income from business activities under 4 – Business income. For this reason, the capital loss must not be entered here again.

For more information, see “The tax treatment of corporate entity’s profits for the sale of its fixed assets” – Yhteisön käyttöomaisuusosakkeiden luovutusten verokohtelu.

Enter any capital losses from the sale of assets such as land, smaller items or a motor vehicle that your company had used in its transportation business (§ 33 of the act on the taxation of business income).

Do not enter the losses that are not entered in the profit-and-loss account (i.e. it is instead entered as a difference between planned and book depreciation). Your company cannot get a deduction for this type of loss. Consequently, it is reported under "Other non-deductible costs". The "Depreciation" line in the Accounting column under “Depreciation and reduction in value of fixed assets” is for entering the resulting change in the difference between tax depreciation (EVL) and book depreciation.

This field is for the leasing fees i.e. costs that your company has paid, as they are recorded in the books.

This field is for the booked reductions in value or write-down of your receivables from customers, of additional losses of other property and related accounts, which have been established as being final losses.

Enter the other deductible business and other expenses relating to your company’s activities in this field. This refers to the kind of expense entries that must not be under the “Other business expenses” heading. Examples of such expenses:

• Additional personnel costs paid on a voluntary basis
• Office expenses
• Motor vehicle expenses
• IT-related hardware and software expenses
• Other machinery & equipment
• Travel expenses
• Selling expenses
• Marketing expenses
• Research & Development
• Administrative expenses
• Other overhead
• Miscellaneous business expenses

Also enter the tax-deductible public broadcasting tax and real estate tax your company has paid.

This line is for the income taxes that you have booked as expenses in the P/L account. This means that you should enter the taxes that relate to this accounting year on an accrual basis, not only the payments of taxes in advance that your company made during the tax year.

Do not enter company-paid public broadcasting tax and real estate tax here because they are treated as tax-deductible expenses. In the same way, if you paid real estate tax, enter it under Other deductible expenses.

This field is for any tax increases, late-filing fees, any discounted late payment interest with relief, late-payment interest and penalty fees for non-filing. All types of punitive tax increases are nondeductible.

Fines and other penalties: Enter any payments of fines, sanctioned penalties, etc., relating to public law.

Merger loss: Enter any loss that your company has made when it has entered into a merger arrangement with another company or with other companies. Note: any profit your company may have earned in a merger is not treated as taxable income. Correspondingly, any loss from a merger is not tax-deductible.

Enter any booked reduction in the value of shares that are included in your company’s fixed assets in this field.

This section is for the statutory reserves made in your company’s books and balance sheet. In most cases, statutory reserves are not tax-deductible.

What is meant by “statutory reserves” is the amount of estimated future expenses and losses arising from the obligations referred to in Chapter 5, §14, Accounting Act, for which no exact amount or date of occurrence is known yet.

Such future expenditure and losses may have to do with a renovation project or a teardown of a production line, or work relating to a facility used in the business, or by warranty repair liabilities for sold products, by your customers’ claims on defective products and by compensation for damages.

A warranty repair provision is tax-deductible, but only in the case of a company in the construction, shipbuilding or metal industry that is liable for the defects in a bridge, airplane, building, or in comparable large units (§ 47 of the act on the taxation of business income). If you have a reserve treated as deductible because it is a warranty-repair provision, enter it in the Tax accounting column under Increases of reserves.

Enter any other non-deductible expenses that cannot be entered elsewhere.

Such expenses include:

• Expenses incurred as a result of generating or maintaining tax-exempt income. However, deductions are allowed for expenses connected to the part of your income that goes over the threshold of tax-exempt income, i.e. connected to the part of your income that is subject to tax.
• Fees paid for creating a connection to an electricity, telecommunications, water supply, sewer or district heating network, and refunded to your corporate entity if it later decides to stop using the connection, giving up the benefit produced by the connection fee.
• Bribes and benefits of a bribe-like nature given
• The amount paid by your company to buy back its own shares is a non-deductible expense unless the shares had been given to the seller due to an employment contract (§16.9 and §18.3).

Enter the expenses your company has paid to Finnish and foreign counterparts relating to your company’s intra-group borrowing, typically, the interest expense you pay to companies belonging to the same group.

The intra-group debt, which is a loan between associated parties, may be direct or indirect. When a contract between two group companies is in force, specifying a lender and a borrower, it is a direct loan. The associated-party relation means that one of the parties to the loan contract has controlling power over the other party, or alternatively there is a third party in existence, which has control over both of the parties to the loan contract. The Finnish legal provisions laying down the criteria of “controlling” power are found in the act on assessment procedure (section 31, subsection 2).  If your company has borrowed money from an unassociated party, not one among your group companies, such borrowing will still be treated as indirect debt inside the group when either of the following conditions is fulfilled:

• The group company or group undertaking has a receivable from the external party that has lent out money, and this receivable is connected to the loan;
• The collateral for the loan is a receivable that would be paid to a group company or group undertaking.

Not all interest expenses from indirect debt, under § 18 a of the act on the taxation of business income, are necessarily entered in the books as interest expense by companies belonging to the same group (Chapter 1, §6, Accounting Act). For this reason, the interest expenses to be entered here may deviate from corresponding interest expenses in the books (paid interest to companies belonging to the same group).

If your company’s net interest expenses exceed €500,000, you must complete and enclose Form 81 – List of net interest expenses.  If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

This line is for any interest you have paid, as recorded in your accounting, to companies where there is a participating interest (Chapter 1, §7, Accounting Act).

If your company’s net interest expenses exceed €500,000, you must complete and enclose Form 81 – List of net interest expenses. If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

Other interest expenses, e.g. relating to

• Accounts Payable
• Bonds and debentures
• Convertible bonds
• Bank loans
• Finance-company loans
• Pension-company loans
• Bills of exchange

If your company’s net interest expenses exceed €500,000, you must complete and enclose Form 81 – List of net interest expenses. If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

Enter the expenses (as defined in § 18 a, subsection 2, paragraph 2 of the act on the taxation of business income) that you have paid when taking a loan, which must be treated as interest expenses.

Some restrictions of deductibility are laid down in § 18a of the act on the taxation of business income. If your company’s interest expenses are not deductible in full due to these restrictions, enter the amount of difference in this line. Complete Form 81 to calculate the difference, i.e. the impact of the restrictions. Complete Form 81 if your net interest expenses exceed €500,000. You should complete it also in case your company is deducting previous years’ net interest expenses this year, which were not deductible during the previous year or years. You are expected to give details relating to all sources of income on Form 81. However, for purposes of the 6B income tax return, only the part that is taxed in accordance with the act on the taxation of business income (EVL) is relevant. (See item no 8 on Form 81.) You can find Form 81 in the Other clarifications stage in MyTax.

If not all the interest expenses of your corporate entity are tax-deductible due to the restriction in §18a, you must enter a minus sign and the amount that you cannot deduct in this line.

Also include any previous years' net interest expense that your company wants to have deducted during the tax year (by claiming it on Form 81).

Illustration 1: Net interest expenses are €1,300,000. You fill out Form 81 in order to see how much the impact of the above restriction prevents your company from deducting the above interest. The results of your calculation on Form 81 show that the €1,300,000 can be deducted in its entirety. As a result, your company has no non-deductible interest, and its deductible net interest expense has already been reported in the tax return lines prior to this line. Leave this line empty.

Illustration 2: The net interest expenses of another company are €1,100,000. You fill out Form 81 in order to see how much the impact of the above restriction prevents your company from deducting the above interest. The results show that €250,000 can be deductible, so €850,000 must remain undeducted. This means that you must enter -850,000 euros i.e. the impact of the restriction in this line. This means that the deductible part of the interest expenses is now diminished by €850,000.

Illustration 3: The net interest expenses are €1,300,000 for the tax year. You fill out Form 81 in order to see how much the impact of the above restriction prevents your company from deducting the above interest. The results on Form 81 show that €1,300,000 can be deducted as the tax year’s net interest expenses. In addition, this company can deduct €200,000 in interest expenses for previous years. Deductible net interest expenses for the tax year were already reported on the company’s tax return. As a result, you should only enter +200,000 euros, the impact resulting from the calculation here. In other words, in addition to the deductible interest expenses reported elsewhere on the company’s tax return, it can additionally deduct the €200,000 entered in this field.

Enter the amount of intra-group support that your company has granted to another group company where your company alone, or together with other subsidiaries own at least 10%. In Finnish national legislation, the definition of “group company” is found in § 6b, subsection 7 of the act on the taxation of business income.

In addition, you must give details on any other expenses you have paid in order to improve the financial status of another company without a reciprocal payment. In addition, fill in any write-downs and losses of the receivables (however, do not do so for accounts receivable) from such a company.

None of these expenses entitle you to tax deductions (§ 16, subsection 1.7, act on the taxation of business income).

Accounting column: Enter any losses of other financial assets, and any final reductions in value as they are in your books.

Tax accounting: Enter the deductible portion of the losses of other financial assets and of the final reductions in value.

• Losses of financial assets are deductible (§ 17.1, act on the taxation of business income). These include losses caused by embezzlement, theft or other crime.
• Final reductions in the value of financial assets are also deductible under § 17.2 of the act; however, they are not deductible when the value of a receivable from another subsidiary company was reduced (see “Group support and write-offs of Accounts Receivable” above).

This line is for any capital losses for the sale of other financial assets, as recorded in your accounting, such as losses incurred from the sale of a security or receivable that had been booked among your company’s financial assets.

This line is for other financial costs as recorded in your company’s accounting books. These costs include:

• Loan management fees
• Bank fees for providing a credit limit
• Bank guarantee commissions
• Credit insurance expenses
• Mortgage expenses
• Recovery expenses
• Exchange rate losses
• Factoring expenses
• Expenses for futures contracts

Do not enter any of the financial expenses that you had entered above under “Financial expenses treated as interest paid.

If you are a cooperative society, this line is for any tax-deductible surplus refund to members, under § 18 of the act on the taxation of business income.

This line is for any intra-group contribution or subsidy that your entity has paid to other group companies. Complete Form 65 to specify. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• 65 – “Form for itemisation of paid and received group subsidies” – Selvitys annetuista ja saaduista konserniavustuksista

Accounting column: This field is for any increases in the reserves based on tax rules, as recorded in the books. Fill out Form 62 to specify. Enter your company’s reserves in MyTax together with the company’s depreciation expenses.

Tax accounting: This field is for the part of your reserves that is tax-deductible. Corporate entities are only allowed the replacement reserve, referred to in §43 of the act on the taxation of business income, and the warranty reserve, referred to in §47 of the act; so you can only enter the increases, if any, in these 2 reserves.

Refer to the instructions for completing the form:

• 62 Specification of reserves, revaluations and depreciation of fixed assets

The “other” category of property or assets covers any company-owned property, which a nonbusiness activity is using, for an income-generating purpose, and also any company-owned property that it does not use for production of income at all. In other words: the “other” category of property is any property or assets that are not part of the company’s financial assets, current assets, investment assets or fixed assets.

Assets connected to the personal source of income may be shares of a holding company that makes passive investments in the corporate stocks of big companies, real estate property and housing-company apartments that had been purchased “as an investment” and are now rented out to outside tenants.

Enclose Form 71B to itemise any losses (for selling “other” assets) that you have had.

Accounting column: Enter the amount in the Accounting column – as it is recorded in your books – of the capital losses caused by sales of other assets and property, and the amount of written-down values of assets.

Tax accounting: Enter the parts of the above amounts, which are deductible in the tax year, of capital losses and written-down values. Generally, when a sale of other property, and a sale of shares in a real estate company or housing company results in a loss, you can get a tax deduction. In the same way, you can also get a deduction for any losses due to selling of investment-fund shares. However, the fund cannot be a limited partnership for which you sold an equity share and made a loss. Similarly, the fund cannot be a foreign investment fund deemed as comparable to a Finnish limited liability company. Do not provide a detailed breakdown on Form 71B relating to the above losses. However, enter the sum of the loss on Form 71B under “Capital and liquidation losses deductible in business during the tax year”.

However, restrictions are in force that limit the deductibility of losses from stocks and partnership shares included in other assets (restrictions do not concern shares in real estate companies and partnerships, and shares in housing companies). If you have sold shares, corporate stock, shares in general/limited partnerships (part of your “other” assets), and the result was a loss, the only way to deduct such a loss is to offset it against any taxable capital gains for selling similar “other” assets. The tax deduction is available during the tax year and 5 years after the end of the tax year. Do not enter the above capital-loss amounts in this field. Enclose Form 71B to itemise them, under Form 71B’s “Capital loss related to other assets, including corporate stock and partnership shares” section.

Read more on deducting the losses (in Finnish and Swedish only, chapter 3.4).

Accounting column: Enter the amount, as it is recorded in your books, of any written-down receivables that are part of your “other” assets.

Tax accounting: Enter the deductible part of the above. In accordance with tax rules, if your company has had a receivable (in the “other” asset category), related to its activities for generating income but the receivable has been lost, the company is entitled to a tax deduction. Read more about the deductibility of decreases in the value of receivables in the taxation of business income.

Starting 2021, the deduction related to expenses for research and development has been extended. All entities that operate business or agriculture and work together with a research organisation can qualify for the extended, additional deduction. This deduction is also called a deduction for research cooperation.

The base for the expenses must be a research and development operation conducted in cooperation with an organisation for research or for the dissemination of information. There must be invoices for sub-contracting that your company has paid for, and the invoices must come from (and be paid to) an organisation for research, or from an organisation for the dissemination of information. This additional deduction is temporary and can be granted for tax years 2021–2027.

Starting tax year 2022, the additional deduction has been 150% of such sub-contracting invoices of the company. However, the minimum deduction that can be granted is €5,000. This means that the total expenses must be at least €3,333.33. The maximum deduction is €500,000.

No additional deduction is granted if direct financial support from the State of Finland or other public subsidies were given to the company for covering the subcontracting expenses.

Complete and submit Form 67A to give details on your company’s grounds for claiming the additional deduction. Enclose a free-form attachment if needed.

Read more: Additional deduction for research and development in tax years 2021–2027.

Starting tax year 2023, it is also possible to claim a general additional deduction for R&D-related expenses. All corporate entities that conduct business or agricultural operations are entitled to the additional deduction. The deduction is made on the basis of R&D-related expenses for wages and purchased services.

The general additional deduction and the temporary additional deduction for research cooperation reported in the previous section cannot be claimed on the basis of the same expenses.

The general additional deduction is 50% of the expenses qualifying for the deduction. The minimum additional deduction is €5,000 in the tax year, and the maximum is €500,000. No additional deduction is granted for such R&D expenses for which the company has received direct state aid or other public subsidies.

Give the grounds for claiming the general additional deduction on Form 67Y. Enclose a separate attachment, if needed.

Starting tax year 2024, it is also possible to claim another additional deduction for R&D-related expenses. This deduction is called the ‘extra additional deduction’.

The base for the extra additional deduction is the yearly growth in the company’s R&D expenses. To work out the exact amount, you need to subtract the previous tax year’s expenses from the current tax year’s expenses that qualify for the general additional deduction for R&D activities. The extra additional deduction equals 45 percent of the resulting difference. No minimum deductible amount is set out. However, the maximum amount is €500,000 per tax year.

You can use Form 67Y in order to calculate the extra additional deduction.

Under certain conditions, the tax-assessment of Finnish parent companies can contain deductions caused by final losses suffered by a foreign subsidiary located in a country of the European Economic Area. The deduction can be granted in the form of a specific deduction for the consolidated group. If your company claims this deduction, enclose a free-text account to give details.

The deduction is available to limited-liability companies and cooperative societies that are in a position where they can pay or receive group subsidy. The act on group contributions as they are treated in taxation (Laki konserniavustuksesta verotuksessa ((825/1986)) contains the definition of “group subsidy”.  It is required that the parent company’s ownership interest is at least 9/10 of the subsidiary’s share capital or of its share certificates. If the subsidiary is owned by controlled group companies domiciled in the same country as the subsidiary, the parent company’s resulting indirect ownership can still qualify for the deduction.

The subsidiary’s loss is treated as being “final” if the subsidiary itself is not in a position to receive tax deductions for the subsidiary’s loss – and if no other related party cannot receive such deductions, either; not in the country of fiscal residence, not in other countries. For more information, see the legal provisions of the act governing consolidated group enterprises’ deduction in the European Economic Area (Laki Euroopan talousalueella sijaitsevan tytäryhtiön lopullisen tappion konsernivähennyksestä (1198/2020)). The subsidiary’s final loss amount serves as the base for the deduction. For a subsidiary in a foreign country, both the final full taxable year of operation and the date when the subsidiary was dissolved must be taken into account when calculating the final loss. You must figure out the loss for both the above points in time, in accordance with the tax rules prevailing in the subsidiary’s country of residence and additionally in accordance with the provisions of the Finnish act on the taxation of business income. The allowable amount is the smaller one of the amounts that result. The assets held by the subsidiary at the time when the calculation is performed must be valuated at their probable selling price.

The maximum limit for this deduction is the parent company’s financial result from its principal business during the tax year. The size of the maximum limit is reduced as a function of any underpriced or free-of-charge contracts’ impact on the subsidiary’s final loss, if such contracts were made between the associated group companies. The tax year when the deduction can be made is the year of the subsidiary’s dissolution.

The parent company must claim the deduction before the Tax Administration has completed its assessment for the year.

Enter the tax-deductible expenses that are not included in the accounting year’s P/L account.

Typically, this field is for any dividends that are related to a work effort by the beneficiary, etc. Dividends from non-listed companies are subject to earned-income tax if the distribution basis is the work effort of the shareholder who gets the dividends, or the work effort of a person in the sphere of interest (§ 33 b.3, act on income tax). Read more about the treatment of dividends based on work effort.

In addition, you must enter any training deduction claimed by your corporate entity. In this case, submit an explanation of the training deduction on Form 79. If you use MyTax to submit your income tax return, fill in Other clarifications accordingly.

Enter the total of the Tax accounting column’s figures in this line: this means the tax-deductible expenses of your business operation.

Enter the expenses consisting of group contribution payments and a reserve for a residential building, which are not considered as part of the allowable loss.

This line is for the taxable profits or deductible losses relating to the business source of income.

Do not enter previous years’ losses in this income tax return. The Tax Administration subtracts them automatically unless your company had events that must be reported under “Changes of the shareholding, information on past losses” on this income tax return. You can check your company’s tax decision for a list of previous years’ losses.

If you are filling out Form 6B on paper: To arrive at the profit or loss related to your business source of income, you must subtract the tax-deductible business expenditure (section 7, line 12) from the business revenue subject to taxation (section 6, line 11). If the difference is a negative value, this is your company’s “business loss” to be allowed for carryover to upcoming tax years. Do not put a minus sign in front of the loss amount.

If your company’s expenditure contains any paid-out group subsidies or a reserve for residential dwelling, you must subtract them from the “business loss” figure because they are items that will not be taken into consideration when the year’s allowable loss is determined.

If your company or other entity received income from an agricultural source, give details as appropriate. If you are submitting the return through channels other than MyTax, enclose Form 7M.

Normally, only the taxable revenue and tax-deductible expenditure relating to an agricultural source of income should be reported. However, the itemisation may contain a specific field for the book value of a reportable amount of money.  This itemisation is for presenting the entire profit or loss for the agricultural source, and you are not expected to re-enter the agricultural amounts under the P/L account for the business source of income or elsewhere.

You must use cash basis, as provided in the agricultural income tax act (543/1967), when filling in the amounts.

In addition, the depreciation related to agriculture must be accounted for on Form 62. The maximum depreciation expense under the agricultural income tax act is not always the same as that provided by the act on the taxation of business income. If you submit your tax return electronically, there may be a feature that prevents you from entering the maximum value under the agricultural tax act into the “Statutory depreciation” field on Form 62. If this occurs, it is due to technical reasons.  You can enter the amount into the field reserved for “additional” depreciation expenses if you do not succeed in entering the maximum value under the agricultural tax act.

All types of corporate taxpayers must give this information – their assets, liabilities and equity.

However, if your corporate entity is a stock-exchange-listed company, you can report the assets and liabilities at their book values, because the net worth and the mathematical value that result from the calculation will have no impact on how your dividends are taxed. The comparison values of listed companies’ shares depend on stock-market quotes, not on the book values on the balance sheet.

For purposes of this guidance, a “listed” entity means a company with all its stock, or a series of shares, being subject to stock-exchange trading in Finland (the basic listing or the 'Pre List' of NASDAQ OMX Helsinki Oy), elsewhere in the European Economic Area, or in a comparable market outside the European Economic Area.

If your company does not conduct business or operate a trade under the definition of § 1, subsection 1 of the act on the taxation of business income, you should itemise the assets under “Other assets”. If your entity is a nonprofit organisation, it may additionally have some non-current investments (assets taxable under the act on income taxation) among its assets.

The business assets intended for permanent use are fixed assets (§ 12, act on the taxation of business income (EVL)). They are normally included in the non-current assets category.

Fixed assets subject to wear and tear include

• buildings,
• machinery,
• various fittings, fixtures and equipment, etc. and
• any patents and other intangible rights that are transferable.

Land, securities and similar fixed assets are regarded as not being subject to wear and tear.

Enter the total value of intangible assets.

Intangible assets include

• patents,
• copyrights,
• trademarks,
• licenses in force,
• concession and permit rights, and
• the license fees for computer software, and
• product-design rights i.e. copyrights to a model or design.

Enter the non-current investments that have retained their value and can be treated as assets. See Form 62, where the corresponding lines are under F – Capitalized Expenditure (§24 to §25, act on the taxation of business income), section 7 – “Undepreciated acquisition cost at the end of the tax year” of Form 62). Please note that the MyTax fields that relate to Form 62 are under "Business expenses".

The expenses you have paid can be capitalized, i.e. partially treated as assets, if they accumulate or retain income for three or more years. Some expenses, typically capitalized in accounting, are the expenses listed in the act on the taxation of business income as “long-term” assets, i.e. they cannot be deducted as an annual expense. Under the provisions of § 24 of the act, these expenses include the improvement costs of a leasehold, and the goodwill value you have paid for when you have bought a business unit. In addition, as it has been established by case-law, some research & development expenses can be capitalized.

Calculated tax receivables, expenses arising from the company's founding, expenses arising from the company’s organisational measures, and long-term expenses lacking a net value as an “asset” do not qualify.

If a difference resulting from a merger is positive in your company’s accounting books, this value must be included in the receiving company's net worth (under the court rulings KHO 1994-B-545 and KHO 1994-B-546).

Enter the total value of real estate, buildings and structures included in the company's fixed assets.

Complete Form 18 to specify. If you are a user of MyTax, the relevant fields will open up automatically.

The value should either be the undepreciated residual acquisition cost (= total undepreciated end-of-year balance of building acquisition cost and land acquisition cost, reported on line 7 on Form 62) or a comparison value (= taxation value), whichever is higher.

You must compare the above values for each real estate unit separately.

Real estate unit’s comparison value

• If your company's accounting year ends between 1 January and 30 September 2024, the taxation value for 2023 is used exceptionally as the comparison value, because the tax value for 2024 has not yet been confirmed at that point.
• If end date of the accounting year is between 1 October and 31 December 2024, the tax value for 2024 must be used.

The Tax Administration’s decision letters for real estate tax contain the exact values. This way, you can look up the tax value for 2023 on the real estate tax decision issued in 2024.

A real estate unit comprises a land area and the buildings located on it. Real estate also refers to a building, structure or other facility located on another owner's land, which can be handed over to a third party without consulting the landowner so that the right of possession for the land is also transferred (§6, act on income tax (TVL)).

Other structures treated as part of the fixed assets that your company owns are:

• Fuel tanks, acid tanks and other structures designed for storage, built of metal or similar materials
• Lighter structures built of wood or comparable building materials
• Structures utilised exclusively for research and development of the business

The comparison value of forest land is its average annual yield × 10.

The comparison value of agricultural land is its average annual yield × 7.

The Tax Administration issues an official decision every year where the annual yield coefficients for forest and agriculture are quoted.

The comparison values for fallow lands and bodies of water is 0.

Refer to the instructions for completing the form:

• Form 18 – List of real estate units included in corporate entity’s fixed assets

Enter the total undepreciated (for tax purposes) acquisition cost.

Examples of machinery and equipment, held by a company:

• Machines and installations
• Trucks, lorries and vans
• Passenger cars
• Commercial vehicles
• Furniture
• Any machinery and equipment that your company leases out (or rents out)

If your company uses some machines and equipment under a leasing contract, those machines, etc. are not regarded as being part of the fixed assets of your company because they are leased. This means that no leased machines’ values can be entered here.

The cash advances that you have pre-paid, if the amounts are booked among your company’s fixed assets.

Complete Form 8A to make comparisons of the undepreciated acquisition costs and comparison values of securities (corporate stock, etc.) included in fixed assets, in financial assets and in other assets. If your entity is a nonprofit organisation, it may additionally have some non-current investments (assets taxable under the act on income taxation) among its assets. Please note that MyTax has separate sections for the corporate shares and securities that relate to your company’s financial assets, on the one hand, and for those that are part of your company’s other asset categories, on the other hand.

Transfer the securities booked among your company’s fixed assets here. Take the value from the column where the total value is higher. After you have entered all the asset categories on Form 8A, you should re-check that the value was transferred from the column where the securities’ total value is higher.

The value of listed-company stock is 70% of the closing stock-market quote on the end date of your accounting year. Click here to see the quotes in the stock market. This website contains the archived quote information for historical dates, including the end date of your accounting year.

The comparison values of shares in mutual funds and UCITS is 70% of the fair market value at end of year.

To find out the comparison value of an unlisted share, look it up on the tax decision that concerns the company that has issued the shares.

In the case of shares in housing companies, the tax value for 2005 is used as the comparison value for housing-company shares bought before 1 January 2006.

Shares bought on 1 January 2006 or later do not have a separate comparison value; nor do unlisted bonds, stock options or shares in a cooperative society. For these securities, you must enter the undepreciated acquisition cost (for income-tax purposes) in the Comparison value column on Form 8A.

If your company is part of a group, this field is for any intra-group receivables that your company has booked among its fixed assets.

“Group companies” refer to the parent company and subsidiaries of a consolidated group enterprise as defined in the Accounting Act (Chapter 1, §6).

This line is for any receivables, included in fixed assets, that you have from companies that are associated or affiliated with you (within the meaning of Chapter 1, §7, Accounting Act).

This line is for any other receivables that your company has booked as part of its fixed assets. 

Enter and itemise the assets that fall under the category of “other” fixed assets.

Other fixed assets may include:

• animals and plants,
• works of art, and
• collectible items or objects.

Enter the total value of all the above fixed assets. Note: MyTax performs an automatic calculation at this stage.

Current assets are merchandise, products, raw materials, semi-finished goods and other goods intended for handing over to a customer in the course of business, with or without further processing. Additionally, fuel and lubricants, and other comparable supplies, intended for consumption in the course of business are regarded as current assets. (Act on the taxation of business income, section 10)

Enter the book value of your company’s raw materials, supplies, consumables. Examples include the materials you need for your production, and various items and commodities that are consumed or used.

They may be directly connected to the manufacturing of the goods intended for sale; or connected to the maintenance of your machinery and equipment.

Enter the value of the WIP that your company has at the end of the year. WIP, work in progress, sometimes also called semi-finished goods, means your manufactured goods that are intended for sale; the manufacturing process is unfinished at the end of the accounting period.

Entries among the WIP accounts can consist of tangible goods or of something immaterial, intangible. Examples of intangible WIP include the unfinished design work of an architectural business or a design company, or an unfinished movie that the company intends to sell when it is completed.

Enter the value of your company’s finished products at the end of the year. This would include the goods that the company itself has manufactured to a state where they are ready for delivery to customers.

“Finished products” also includes by-products and manufacturing waste if your company has a factory with a manufacturing activity.

Enter the end-of-year value of the goods you have bought from an external supplier and intend to re-sell.

If you are engaged in wholesale or retail commerce, you can add the value of packaging materials to the end-of-year value.

Real estate and buildings – current assets: Enter the value of the real estate property that your company has booked among its current assets.

Securities – current assets: Enter the value of the shares, corporate stock and other securities that your company has booked among its current assets.

Enter the value of other commodities booked under current assets. Typically they include cash advances paid out, provided that the paid-out sums are booked among your company’s current assets.

Enter the total value of all the above current assets. Note: MyTax performs an automatic calculation at this stage.

Financial assets include cash, receivables and similar holdings (§ 9 of the act on the taxation of business income).

Additionally, the end-of-year balance of your company's Accounts Receivable account and your company’s cash reserves in the form of securities are also regarded as financial assets.

Enter the total of long-term and short-term accounts receivable, instalment accounts receivable, and other comparable amounts you expect to receive from customers.

This refers to receivables from companies within the same group; not, however, the ordinary accounts receivable related to your sales.

Companies within the same group, i.e. “group undertakings”, are the parent company and subsidiaries referred to in Chapter 1, § 6 of the Accounting Act.

Enter the receivables from associated/affiliated companies (Chapter 1, §7, Accounting Act), excluding any ordinary accounts receivable related to your sales.

This line is for entering the balances of loans other than the loans discussed above. For example, your company may have issued loans to the staff and management, both long-term and short-term.

Please note that any loan receivables from shareholders are not entered here; instead, they are entered as other non-current investments under Shareholder loans, because they are included in the corporation's other assets.

Items to be included:

• Receivables from tax authorities, relating to your tax positions
• Deposits made in connection with an insurance contract
• Deposits made when a rental contract starts
• Damages or insurance indemnity amounts that you are going to receive

Deferred tax assets (Chapter 5, § 18, Accounting Act) are not included in the assets when calculating net worth. However, you must enter a receivable from the Tax Administration in this line if it is for current year’s taxes that you have booked on an accrual basis.

Enter the year-end value of the shares, corporate stock and other securities that your company has booked among its financial assets.

Complete Form 8A to itemise the securities you have booked as fixed assets, financial assets, and as “other” assets. Transfer the interim amount (Total comparison value or acquisition cost of financial assets) to this line on Form 6B from the column at the bottom of Form 8A where the total amount is higher (i.e. of fixed assets, financial assets, other assets and other non-current investment (taxable under TVL, the act on income tax)). After you have entered all the asset categories on Form 8A, you should re-check that the value was transferred from the column where the securities’ total value is higher. If your entity is a nonprofit organisation, it may additionally have some non-current investments (assets taxable under the act on income taxation) among its assets.

Prepayments and accrued income: Enter the balances of the relevant accounts as they are in your company’s books.

Receivables from a percentage-of-completion entry: If the value of an ongoing project is based on its percentage of completion (as in building construction), enter the relevant balance.

Cash in hand: Enter how much cash, not deposited in bank accounts, your company has.

Cash deposited in banks: Enter the bank-account balances. The balances include bank deposits, investment assets and foreign-currency assets, and others.

Enter the value of items booked among financial assets that are not included in any of the above.

Enter the total value of all the above.

Enter the value of corporate stock, shares, and other securities outside of your business.

Complete Form 8A to itemise the securities you have booked as fixed assets, as financial assets, and as “other” assets. Transfer the interim amount “Other assets in total” to this line from the column at the bottom of Form 8A where the total amount is higher (i.e. of fixed assets, financial assets, other assets and other non-current investment (taxable under TVL, the act on income tax)). After you have entered all the asset categories on Form 8A, you should re-check that the value was transferred from the column where the securities’ total value is higher. If your entity is a nonprofit organisation, it may additionally have some non-current investments (assets taxable under the act on income taxation) among its assets.

Enter any real estate that does not serve the business purposes of your company. For example, enter any real estate you have rented out to a third-party tenant.

The value to enter should either be the undepreciated residual acquisition cost (used for income-tax purposes) or a comparison value (= tax value), whichever is higher.

• If your company's accounting year ends between 1 January and 30 September 2024, the taxation value for 2023 is used exceptionally as the comparison value, because the tax value for 2024 has not yet been confirmed at that point.
• If end date of the accounting year is between 1 October and 31 December 2024, the tax value for 2024 must be used.

The Tax Administration’s decision letters for real estate tax contain the exact values. This way, you can look up the tax value for 2023 on the real estate tax decision issued in 2024.

Enter the amounts that your company expects to receive from companies within the same group.

Enter the receivable amounts that cannot be entered in the previous field.

Indicate the total amount of loans granted to shareholders and their family members on the balance sheet date.

In addition, you should itemise those loans by every shareholder.  The Basic details stage in MyTax is for the itemisation of the loans. If you submit the income tax return through other channels than MyTax, fill in the “List of shareholders, payments paid/accrued and amounts borrowed as shareholder loans, to shareholder and family members, at end of accounting period” field.

Enter the value of your company’s assets and property that are not listed above, and that are not related to business.

Enter the total value of all the “other” assets above.

This field is for the short-term and long-term bond loans, debenture loans and other debenture stock issued by your company.

Include any short-term and long-term convertible debentures that you have issued for subscription.

Enter the following amounts:

• Short-term and long-term loans from financial institutions
• Loans from financing companies and your repayments of these loans
• Factoring-account balances
• Other short-term loans from financial institutions.

Enter the following amounts:

• Short-term and long-term accounts payable
• Any instalment-account balances
• Any accounts payable to associated/affiliated companies and group companies
• Accounts payable relating to your investments and to advance invoices
• Other accounts payable.

This field is for your company’s short-term and long-term debt balances to companies within the same group but not, however, accounts payable.

Typically, this field is for any debts, etc., similar to the following:

• Advances you have received from group companies
• The amounts you owe to group companies in the form of bills of exchange
• Other intra-group debt balances
• Accruals and deferred income, where the counterpart is a group company

Companies within the same group, i.e. “group undertakings”, are the parent company and subsidiaries referred to in Chapter 1, § 6 of the Accounting Act.

However, if the group of companies has a policy of dividend distribution in advance, and an indebtedness in the form of dividends has formed, you must not include that among the “amounts owed to companies within the same group”. Do not enter it in this field. Indicate the amount subject to advance distribution, but consisting of yet unpaid dividends, in the “Total dividends or surplus agreed to be distributed” field.

Enter the short-term and long-term debts your company owes to companies where it has a participating interest (under Chapter 1, Section 7, Accounting Act). However, do not enter any accounts-payable balances in this line.

This means that this line is for any received advances from associated or affiliated companies, and any bills of exchange, other debt, and accruals, etc., owed to them.

Enter any short-term and long-term liabilities to shareholders and their family members.

Items to be included:

• Rental income that you have received in advance
• Interest income
• The part of your company’s received investment grants that relates to future periods
• Other deferred income or advances that you may have to pay back
• Any wage expenses booked for the accounting period on an accrual basis
• The liability consisting of vacation pay, not yet paid out to your workers.

Enter all long-term transfers or accruals of money, received by your company in advance.

In addition, enter any short-term transfers or accruals of money, received in advance.

This field is for any other debt and liability items your company has booked. Other liabilities may include

• Long-term pension loans
• Financial bills-of-exchange and liabilities to workers
• Short-term financial bills-of-exchange
• Tax withholding, which you have not yet paid on to the tax office
• Debt consisting of employer’s health insurance contributions that are not yet paid

If you are an insurance company or a pension insurance company, you must enter outbound payments you are responsible for as debt; and a balance-sheet reserve (for the strengthening of an insurance company’s solvency) must also be entered as debt (within the meaning of the act on the valuation of property and assets, §2.3.1 and §2.3.2).

If you are a power company, telecommunications operator, etc., your debt also includes the payments received from your customers who join a utility grid that you maintain (electric power, telecommunications, etc.) if the amounts have to be refunded to the customers upon termination of the utility contract (within the meaning of the act on the valuation of property and assets).

For purposes of the Calculation of Net Worth, tax debt estimates within the meaning of Chapter 5, §18, Accounting Act, are not debt, so you must not enter them as debt. However, tax liabilities must be entered, if they are caused by taxes booked for the accounting period on an accrual basis.

The total of subordinated loans (Chapter 12, § 1, Companies Act) you have taken.

For purposes of taxation, a subordinated loan is considered a liability item (cf. § 2.3.3, Valuation Act), so it is entered as a liability in the Calculation of Net Worth, regardless of its booking method.

Enter the total amount of company debt. Note: MyTax performs an automatic calculation at this stage. 

Please note that the amount entered into this field is not necessarily the sum of Current liabilities total and Non-current liabilities total. This is due to the fact that the amount must instead be calculated as required by the tax-valuation rules on liabilities. In contrast with this, "Current liabilities total" and "Non-current liabilities total" come from the accounts i.e. these debt amounts must equal the book values.

Enter the total amount of current liabilities based on accounting.

Enter the total amount of non-current liabilities based on accounting.

MyTax performs a calculation based on your entries in the asset and liability fields.

If you are not submitting the tax return in MyTax, you must subtract the total of all liabilities from the total of all assets. If the result is positive, enter it here.

MyTax performs a calculation based on your entries in the asset and liability fields.

If you are not submitting the tax return in MyTax, you must subtract the total of all liabilities from the total of all assets. If the result is negative, enter it on this line. Do not add a minus sign.

Share capital or cooperative capital: Enter your company’s or other corporate entity's registered share capital, the registered capital of a cooperative, or other comparable founding capital of the entity.

Other restricted equity: Enter the current amount of any other restricted equity. Under the Accounting Act, some reserves of the balance sheet are restricted and cannot be used freely (for more information, see §8, subsection 1, Companies Act).

Old reserve funds and share-premium accounts are also restricted equity, referred to in Chapter 8, § 1 of the new Companies Act (§ 13, Act on the Implementation of the Limited Liability Companies Act).

Fund for invested equity: This line is for a fund for invested unrestricted equity within the meaning of Chapter 8, § 2 of the Companies Act.

Other reserves: Fill in the values of any other reserves included in your company’s unrestricted equity.

Retained earnings: Enter the profits from previous years as recorded in your books here if the total sum of previous years' profits and losses is positive.

Losses from previous years: Enter the retained loss from previous years, as it is on your books, if the total sum of previous years' profits and losses is negative.

Profit for the year: Enter the book profit for the year that closes.

The lines below the ”Loss for the year” line are available to you for making an additional re-check on the taxable income and the items affecting it. The bottom line must be equal to your company’s book profit.

Loss for the year: Enter the book loss.

To verify, you can make an additional calculation of the losses that can be allowable for carryover to future tax years. The bottom line must be equal to your company’s loss as it is booked.

Filling in the following items is voluntary:

Taxable profit: The first line is for the sum total of your taxable profits from various sources of income.

To arrive at such a total, add together the profits of your business source of income, agricultural source of income (and if your entity is a nonprofit company, the personal source of income).

Do not subtract the previous year’s losses from the profit figure.

Loss to be allowed for carryover: Enter the sum total of the losses to be allowed for carryover to next accounting periods.

To arrive at such a total, add together the losses of your business source of income, agricultural source of income (and if your entity is a nonprofit company, the personal source of income).

Tax-exempt revenues: Add the non-taxable revenues, as recorded in your accounting for the accounting period, to the taxable profit, or to the loss to be allowed for carryover.

You can arrive at the sum of the non-taxable revenues by adding together the following items:

• capital gains for selling shares included in fixed assets, and capital gains from liquidation of assets, with their taxable portion subtracted
• receipts of dividends, with their taxable portion subtracted
• received profit-shares for partnerships/consortia, with their taxable portion subtracted
• revaluation gains, with their taxable portion subtracted
• reversals of reserves, with their taxable portion subtracted
• tax refund
• cinema support received
• other tax-exempt revenue in the profit and loss account
• receipts of dividends, included in a personal source of income, with their taxable portion subtracted, as itemised on Form 7A

Non-deductible expenses: Subtract the non-tax-deductible expenses.

Your total non-tax-deductible expenses is the sum of the following:

• Depreciation expenses, net of the deductible part of them (however, do not include any unused depreciation relating to previous years)
• Reductions in the value of fixed assets, net of the deductible part of them
• Entertainment expenses, net of the deductible part of them
• Donations granted, net of the deductible part of them
• Capital losses for the selling of securities included in fixed assets and capital losses connected to liquidations, net of the deductible part of the losses
• Direct taxes
• Punitive tax increases
• Fines and other penalties
• Loss resulting from a merger of companies
• Write-down of corporate stocks among your company’s fixed assets
• Statutory reserves
• Other non-deductible expenses
• Paid group subsidy and write-offs of accounts receivable
• Losses of other financial assets and final write-down of values, net of the deductible part of them
• Increases of reserves, net of the deductible part of them

Other reconciliation between your accounting and tax-accounting profits, such as:

– Other taxable revenues (not in the accounting period’s P/L account)
– Amounts not taken into consideration when calculating the allowable loss for the period
+ The depreciation expenses that you had not used during previous years, included in the “deductible portion” of depreciation in the Calculation of taxable income
+ Other deductible expenses (not in the accounting period’s P/L account), e.g. a donation deducted in taxation (§ 57, Income Tax Act) not booked as an expense

+ Additional deduction for research and development

+ The deduction given to a group enterprise relating to final losses

The end result of this reconciliation must equal the profit or loss on the books.

The sum total of the capital, equity and reserves items, or the total equity on the books. Note: MyTax performs an automatic calculation at this stage.

If your company owns more than 10% of another consortium, corporation, etc., please complete and submit Form 65. You must also provide full details if your company has received or given group subsidies during the accounting year. If you are a user of MyTax, the relevant fields will open up automatically.

If you already itemised the relevant information in the Calculation of taxable income stage, you do not need to fill in a new itemisation again.

Refer to the instructions for completing the form:

• Form 65: Account of corporate entities and consortia where ownership exceeds 10%, and of group contributions given and received

Note: To enclose Form 65 is not acceptable as a replacement of Form 66 that outlines the intra-group relations within a group of companies.

If your company is required to provide a list of its subsidiaries for the purposes of tax settlement, please complete Form 66 to do so. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• Form 66: Account of intra-group relations

Complete Form 70 to demand credit for foreign-paid taxes in Finnish income taxation. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

If you have paid taxes to foreign countries, and these taxes qualify for crediting in Finland, fill in the amount in the appropriate fields. In addition, if taxes were paid to foreign countries relating to earlier tax years and this has not been credited previously (due to a low amount of the income tax payable to Finland (so that the foreign tax was so high that it could not be subtracted from the income tax to Finland)), you can fill in the appropriate space on this form to demand credit.

Refer to the instructions for completing the form:

• How to fill out the form: Claim for eliminating double taxation (instructions for Form 70)
• Form 70: Claim for eliminating double taxation

For more information, see guidance: ”Relief for international double taxation – corporate taxpayers” — Kansainvälisen kaksinkertaisen verotuksen poistaminen yhteisöjen verotuksessa (available in Finnish).

If your company is treated as having a permanent establishment in a foreign country, submit Form 75 to report the economic results of that permanent establishment to the Finnish Tax Administration. If the foreign-located permanent establishment has been converted into a corporation, complete Form 75 also to inform the Tax Administration of its previous years’ losses that will be added to the parent company’s income. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

• Form 75: Profit calculation for permanent establishments abroad

Answer the question regarding your company’s balance sheet and profit-and-loss account (reference is made to IAS/IFRS or GAAP accounting standards, and § 7a of the Accounting Act).

If documentation on transfer pricing is required of your company, enclose Form 78 to report the information. If you are a user of MyTax, the relevant fields will open up automatically on your screen.

Refer to the instructions for completing the form:

• Form 78: Account of transfer pricing

Read more:

• Facts about transfer pricing documentation
• What are the circumstances where a company must prepare documentation to describe its transfer pricing?

Fill in this space as appropriate.

A transfer of business refers to an arrangement where a limited company transfers all assets, liabilities and reserves that are related to one or several business units to another company. In return for transferring a business unit away, the company is given a block of stocks in the receiving company. The receiving company, now the owner of the business unit that was transferred, continues to operate its business.

We recommend that you make sure that the arrangement where your company participated actually is a transfer of business, referred to in the act on the taxation of business income (in §52d of the act).

For more information, see “Corporate events and their tax treatment” – Yritysjärjestelyt ja verotus – liiketoimintasiirto (a guide in Finnish and Swedish).

Fill in this space as appropriate.

In a swap (or exchange) of shares, your company would acquire ownership of another company’s shares to the extent that your company’s holding now reaches more than half of the votes in the other company.  A swap also takes place if your company buys more stocks in a company where it already has more than half of the votes, paying for them by giving your company’s stock to the other company’s shareholders.

We recommend that you make sure that the exchange deal you have participated actually is a swap within the meaning of the act on the taxation of business income (under §52f of the act).

For more information, see “Corporate events and their tax treatment” – Yritysjärjestelyt ja verotus – osakevaihto (a guide in Finnish and Swedish).

Fill in this space as appropriate.

You must give an answer to this question also if

• your company only conducts business on Åland but its registered domicile is in mainland Finland, or
• your company’s registered domicile is Åland, and it conducts business in mainland Finland.

Please note that if your company sells goods/services on Åland but you have no office or activities there, so you are selling from mainland Finland only, the income is not sourced to Åland.

Enclose free-text information on how your profits/losses are divided between Åland and the mainland. If you are a MyTax user, you can add the enclosure in the Financial statements stage. Select “Income records for Åland Islands” as enclosure type. Indicate either the percentages or the €€ relating to Åland and mainland, respectively, to provide information on the division of your profits or losses. The profits subject to tax should be the base for the related calculations. This means that to indicate the proportions represented by your Åland activities and your mainland activities, it is not acceptable to set up a calculation based on sales, turnover, net sales, etc.

Åland-domiciled corporate entities must pay municipal tax on all their income to Åland’s tax authority. This rule is based on the provisions on municipal income taxes (see Ålands författningssamling 119/2011).

Under the same provisions, an entity domiciled in mainland Finland must also pay municipal tax to Åland on the part of its income attributable to the operation on Åland. However, under the Finnish act on income tax (Tuloverolaki 1535/1992), all corporate entities must pay income tax at the 20-percent rate, the proceeds from which are distributed between the State of Finland, municipalities, and the parishes of churches. To prevent an economic double taxation of companies operating on Åland, the municipal income tax collected from them is subject to relief of double taxation. The public authority that carries this out is either the Provincial Government of Åland or the Tax Administration, depending on the company's registered domicile.

If you demand the above deduction for purposes of business, fill out Form 79 to give further details. If you are a user of MyTax, the relevant fields will open up automatically.

If you demand the above deduction for purposes of your agricultural operation, fill out Form 79 to give further details. If you are a user of MyTax, the relevant fields will open up automatically.

Refer to the instructions for completing the form:

• Form 79: Claim for training deduction in business operations
• Form 79A: Claim for training deduction in agricultural operations

Please note: Not all employers are entitled to claim the deduction. These employers include associations, foundations, universities and the corporate entities referred to in § 20 and § 21 of the act on income tax. Read more about the training deduction.

The restriction on deductibility for the tax year’s interest expenses (§ 18 a, act on business tax) may have an impact on your company’s deductions. Complete Form 81 to perform the related calculations.

Your company is under obligation to submit an account of its net interest expenses if the threshold of €500,000 was exceeded during the tax year. The account must also be submitted if your company demands deductions relating to previous years’ interest expenses, if these expenses could not be deducted the year when your company paid them.

Refer to the instructions for completing the form:

• Form 81 – Net interest expenses

Read more about the restricted deductibility of interest expenses.

Give full details on any statutory or other reserves as they are in your company’s accounting books. In addition, give details on your tax-deductible reserves (Forms 62 and 12A). If your company has depreciable fixed assets subject to wear and tear, the itemisation must be submitted even if no depreciation expense is booked for the year.

However, if you are MyTax user and you already entered this information when completing the “Calculation of taxable income” stage, do not repeat it here.

Refer to the instructions for completing the form:

• Form 62: Specification of reserves, revaluations and depreciation of fixed assets

Always enclose the auditor's report with the return if your company has the statutory obligation to have its financial statements audited.

• Tick the "Yes" box if the auditors have already given their report (before you file the return).
• Tick the "No, will give later" box if the auditors have not yet given their report but will do so at a later date. 

If the audit is not completed by the deadline date of the income tax return, please deliver the auditor's report to the Tax Administration later, within one month of the date when the auditor gives their report. You can deliver it in an electronic format.

• Tick the "No because no auditor has been appointed" box if you have a small business that exercises its option to not appoint an auditor (as provided in Chapter 2, section 2 of the Act on Auditing). 

Companies can choose not to appoint an auditor if no more than one of the following conditions was fulfilled during both the closed accounting year and the year before that:

• The balance-sheet total exceeds €100,000.
• The net sales (=turnover) is over €200,000.
• Average number of people on the payroll is more than 3.

However, an auditor must be appointed if your company’s internal rules, its articles of association, etc. require it. In addition, an auditor must be appointed under the Act on auditing (chapter 2, § 2, subsection 4) if your company is active in certain sectors of business and if it exerts influence over other corporate entities.

If your company’s auditors already finished their work, indicate whether the auditors' report contains any disapproving statements, remarks or additional details.

If you submit your tax return on paper, complete Form 63: Details on financial statements for the Tax Administration and the Trade Register.

Enclose the following materials with the tax return, relating to your annual closing of accounts:

1. Your company’s financial statement that contains: 
   • The company’s profit-and-loss account and balance sheet, excluding its balance-sheet specifications 
   • The notes to financial statements, also with no specification pages.
2. The auditor’s report for the year, if your company is required to have an audit conducted. 
3. Information regarding the general meeting of shareholders and on what was decided – you can enclose a photocopy of the minutes of the meeting
   • The date when the shareholders’ meeting approved the balance sheet and P/L 
   • The year’s profit or loss, and how it should be processed in accounting books 
   • The distribution of the year’s profits (if dividends were agreed upon, give the date of that decision, the amount and the first date when the dividends are available to the shareholders who receive them).
4. The company’s report on its business activities during the year, and the statement of its cash flows; provided that your company is required to submit these documents. 
5. The consolidated financial statement for the year, if included in your company’s annual financial statements. Enclose a consolidated P/L account, balance sheet, notes, and the auditor’s report for the entire group and, if applicable, the group’s consolidated cash-flow statement. 

If your company has not yet prepared its financial statements by the tax-return due date, you can submit more enclosures later in electronic format. If you are a user of MyTax and you need to add something to the tax return later, you can do so in MyTax. If there were no changes to the financial statements when they were approved, the statements must be delivered to the Tax Administration within one month from the date when they were approved. If the financial statements were changed when they were approved, the statements must be delivered to the Tax Administration without delay.

Please create single, integrated attachment files to enclose the financial statements with your company’s income tax return.

Please select the attachment type correctly, which in this case would be “PRH and Tax Administration – Financial statement”. The financial statements > Enclosures section in MyTax contains a feature where you can select the appropriate Type of attachments. Click the Add file button to add an attachment file. Please fill in the Description field to give details. The name of the attachment file type indicates whether the Tax Administration should pass on the enclosed document to the PRH.

The type selection indicates whether the attachment file is passed on to the PRH or whether it is only for the Tax Administration’s use. Depending on what filenames the attachment files have, the Tax Administration sends the financial statements of all companies that submit this tax return (Form 6B) to PRH for public release in the Trade Register records.

If you are submitting the tax return in MyTax, select “PRH and Tax Administration” as the type (for example, PRH and Tax Administration – Financial statement) if the attachment file is among those that will be passed on to the Trade Register. 

This way, the following entity types’ balance sheets and P/L’s are sent there:

• limited-liability company and cooperative society 
• non-mutual real estate holding company 
• co-operative bank and savings bank 
• mutual insurance company and mutual insurance association

The Tax Administration does not send the financial statements of the entities that are not subjected to the obligation to maintain their latest financial statements in the register, and of the entities with a restriction of this obligation. This means that for example, pension funds resembling a foundation are not among the entities for which the Tax Administration sends the financial statements on to the Trade Register. 

In some cases, the Tax Administration does not send the financial statements on, but the company still has the obligation to maintain its financial statements with the Trade Register. If this concerns you, your company must send its financial statements to the PRH directly. However, because a part of the financial statements must be enclosed with the year’s income tax return, also the companies described above must disclose their financial statements to the Tax Administration.

Read more about how to maintain the latest financial statements on the register (PRH).

Please create a single attachment file to enclose the financial statements with your company’s income tax return.

Attachments can have the following file formats: PDF, RTF, DOC, DOCX, JPEG, JPG, TIFF and PNG.

Please note that if you convert files into PDF, the layout of the saved document may change. Please check the file's contents after attaching it.

You can add information and correct details on the tax return up until the end of the tax assessment process. You can look up the end date for tax assessment on your tax decision. However, in the case of a corporate entity, the end date is no later than 10 months after the end of the final calendar month of the accounting year of the corporate entity.

Your new submittal of the income tax return will replace the earlier return fully. The earlier return can be a template that you can use when filling in the new entries. It is important to enter all the corrections carefully. 

When the tax assessment process has ended, you cannot make any corrections. If you need to have something changed, you must submit a claim for adjustment.

Read more: 

• When does the Tax Administration complete the year’s assessment process?
• How to claim adjustment to income tax – limited companies and cooperatives