Withholding on dividends and cooperative surplus – how to file and pay
A limited liability company must withhold tax on dividends it has distributed and on dividends paid through a substitute payer. A cooperative society must also withhold tax on surplus it has distributed and on surplus paid through a substitute payer. Tax is withheld only when the beneficiary is a natural person or the estate of a deceased person.
The company or cooperative can use MyTax to submit a tax return on the withholding. It can also pay the taxes in MyTax. In addition, it must file an annual information return on the information.
Your tax period is usually a calendar month. This means that you must usually file and pay the tax monthly. If the Tax Administration has granted your company an extended tax period, you can file and pay the tax quarterly.
File and pay the withholding by
- the 12th of the month after the tax period, if you file monthly.
- the 12th of the second month after the tax period, if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.
If the 12th falls on a Saturday, Sunday or a public holiday, the deadline for filing and payment is extended to the next business day.
The withholding is filed and paid by the party distributing the dividend or surplus.
Report the withholding for the tax period when the dividends or surplus became available for payment to the beneficiaries.Only enter the amount of the taxes withheld, not the amounts of the dividends or surplus.
How to file in MyTax
- Go to MyTax and log in (opens in a new window)
- Open the All tax types tab on the home page.
- Go to Self-assessed taxes and click Tax returns on self-assessed taxes.
- Go to “Withholding on dividends and cooperative surplus” and click Select period.
- Click “File return” for the end date of the tax period for which you wish to file a return.
You can file on paper only if there is a special reason, for instance if electronic filing is impossible due to technical difficulties. You can find the link to the form at the bottom of the page.
Instructions for filing on paper: Fill in these details on the tax return for self-assessed taxes (4001e) under Information on other self-assessed taxes (tax type code 92).
Indicate the number of the tax period as follows:
- If your tax period is the month, enter the number of the month (1–12). Example: If you are filing for March, your tax period is “3”.
- If your tax period is the quarter year, enter the number of the quarter (1, 2, 3 or 4). Example: If you are filing for the second quarter (April–June), your tax period is “2”.
In addition, enter the year for the tax period in four digits.
You can file withholdings on dividends up to 12 months in advance.
You must also file an annual information return on the distributed dividends and surplus. Annual information returns cannot be filed in MyTax.
If there is an error in the return you have filed, correct it as soon as possible. All errors must be corrected even if they do not affect the tax amount. You can make corrections to self-assessed taxes in MyTax.
Correct the errors by filing a replacement return for the tax period that the errors concern. In the replacement return, include the new and corrected details as well as all the other details that were already correct in the original return.
If you are making corrections to details for which you have also filed an annual information return, you must also correct the annual information return. You cannot make corrections to annual information returns in MyTax. Read more about making corrections to annual information returns.
Account operators, securities depositories and other authorised filers (such as banks that handle the dividend payments of companies in the book-entry system) are entitled to submit self-assessed tax returns on behalf of their clients in connection with the following taxes:
- 68 Amounts withheld on interest and profit-shares paid out
- 92 Amounts withheld on dividends and cooperative surplus
- 39 Tax withheld at source on dividends and cooperative surplus (paid to non-residents)
- 69 Tax at source on interest (non-residents)
- 84 Tax withheld at source on interest income (residents)
The actual payer (e.g. the company paying dividends) must have authorised the account operator, securities depository or other filer to report these self-assessed taxes. The Business ID on the return must be that of the account operator, depository or other filer. You must not enter the Business ID of a software provider, accounting firm or other third parties. Returns prepared by account operators, securities depositories and other authorised filers can only be uploaded as a file on Ilmoitin.fi in other e-services.
Instructions for filing (Data format specification VSRMUUKV)
Enter the Business ID of the account operator, securities depository or other third-party filer in one of the following data entries:
- ID of the account operator that submits the return (080)
- ID of the securities depository that submits the return (088)
- ID of the other third-party filer that submits the return (093)
- The other third-party filer is usually a foreign payor’s representative
Note: The taxpayer’s Business ID (010) cannot be the same as the ID of the party that submits the return (account operator, securities depository, or other filer). If the taxpayer and the account operator are the same, the securities depository’s ID must be entered as the filer instead of the account operator’s ID.
Name of the securities depository where issued (067)
Report the name of the depository where the security was issued. This information is required if the security was issued in a depository, in Finland or abroad.
ID code of the securities depository where issued (068)
Report the Finnish Business ID or foreign TIN of the depository where the security was issued. This information is required if the security was issued in a depository, in Finland or abroad.
- If you are reporting tax at source or withholdings on dividends from a company in the book-entry system, always include the securities depository’s ID.
- If you are reporting withholdings or tax at source on interest, include the securities depository’s ID if you know it.