Did you file your tax return late? – corporate entities and benefits under joint administration
Corporate entities and benefits under joint administration – such as limited companies, associations, jointly owned forests and road maintenance associations – must file their income tax return within 4 months from the end of their accounting period.
If you file the tax return or related information late, the Tax Administration may impose a late-filing penalty or punitive tax increase.
Before the end of tax assessment: late-filing penalty
If you file your tax return after the filing deadline but before the organisation’s tax assessment has been completed, you may have to pay a late-filing penalty. The late-filing penalty is €100. You will see the payment in your tax decision.
You may also have to pay a late-filing penalty if you file the tax return on time but you then make additions or corrections to it on your own initiative after the due date but before the completion of the tax assessment. In these cases, however, a late-filing penalty is usually imposed only if the changes to the tax return increase the amount of taxable income.
Late-filing penalties relating to income taxation are imposed only once in a tax year.
After the end of tax assessment: punitive tax increase
If you have not filed the tax return before the end of tax assessment, you will have to pay a punitive tax increase. You may also have to pay a punitive tax increase if the return you have filed is incomplete or inaccurate.
The minimum amount of the punitive tax increase is €150.
The Tax Administration uses a formula to calculate the tax increase. The increase is 0.5–10% of the amount of increased income, i.e. of the amount that could not have been taken into account in tax assessment due to the filer’s neglect. Factors such as the significance of the tax return’s errors or omissions determine the percentage of the increase. Errors such as unreported income or unjustified deductions may result in increased income. There is no maximum limit to the amount of the punitive tax increase in euros.
If the Tax Administration is going to impose a punitive tax increase on you, we will always send you a hearing letter first before we make the final decision on the increase.
When are penalty fees not imposed?
If you have a valid reason for filing late – such as a sudden illness – no late-filing penalty or punitive tax increase will be imposed.
In addition, no penalty fees will be imposed in the following circumstances:
- You make changes to your tax return after the filing deadline, but the changes decrease the amount of taxable income. (However, you may still have to pay penalty fees if you file late repeatedly.)
- You are only a little late in filing your tax return or changes to it, or the information that was added has only a small impact on tax assessment.
- Before tax assessment has ended, you notify the Tax Administration that taxation must be adjusted in accordance with the organisation’s financial statement.