Taxability of benefit

If the taxation on a benefit differs from the default value of an income type, you can use the ‘Taxability of benefit’ data to notify data users of how the paid benefit is handled in taxation.

Note that the ‘Taxability of benefit’ data can only be provided for specific income types. For some income types, this data is mandatory. You can check the mandatory data for each income type from the document Benefits – Codes – Income types on the Documentation page.

One piece of specifying ‘Taxability of benefit’ data can be entered for one income type. This data cannot be entered for deductions from a benefit.

Earned income

All of the income is earned income and tax has been withheld.

Earned income, 20% increase

The income is earned income with a 20% increase.

Earned income, only health care contribution is collected

Only the health care contribution is collected from the income. Only enter this data when you report the pension income paid to a resident taxpayer.

Capital income

All of the income is capital income and tax has been withheld from it in accordance with the capital income tax rate.

Capital income, 20% increase

The income consists of capital income increased by 20 per cent.

Capital income, 50% increase

The income consists of capital income increased by 50 per cent.

Tax-exempt

The income is tax-exempt. If the withholding tax rate is 0 per cent on the income earner’s tax card, do not enter this data. You do not need to report income type 1266 Withholding tax.

Tax-exempt, data according to the act on inheritance and gift tax is given

Income data under section 28 a of the act on inheritance and gift tax (perintö- ja lahjaverolaki 378/1940) must be submitted to the Finnish Tax Administration. If you enter the ‘Taxability of benefit’ data, also report insurance data.

Capital income, and data according to the act on inheritance and gift tax is given

The income constitutes capital income in the taxation of income, and data about the income under section 28 a of the act on inheritance and gift tax must be submitted to the Finnish Tax Administration. If you enter the ‘Taxability of benefit’ data, also report insurance data.