Your prepayment amount is based on your company’s estimated profits
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1
Request prepayments before starting your business activities
When you start up a new business, you must provide an estimate of its income, expenses and operating profit. You have to pay taxes in advance based on the estimate you have provided. If you operate a small-scale business, your income and expenses from business may be taken into account in the tax rate on your tax card for wages. In that case, change your tax card details. Otherwise, request a prepayment decision.
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2
Follow how much profit your business makes and request changes to your prepayments if necessary
The total prepayment amount is based on your estimate of the company’s taxable income. During the year, compare your actual income with the estimate. If they do not seem to match, request changes to your prepayment amount. You can request changes more than once a year. Note: If the calculated prepayment is too high, you can request adjustment. Do not leave the tax unpaid, and do not pay a smaller amount than what was imposed in the prepayment decision you received.
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3
Make the prepayments
After you have requested prepayments, you will receive a prepayment decision. The decision includes the number of payment instalments, their due dates and instructions for payment.
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4
If the calculated prepayment is too small
If the tax withheld or prepayments made during the tax year do not cover the taxes for the entire year, you must pay the missing amount as back taxes after the tax assessment has been completed. If you want to pay the missing amount before that, you can request an additional prepayment. If you make an additional prepayment, you can reduce the amount of back taxes and the interest calculated on them.
