When to file a transfer tax return on a business transfer

Amendments to the act on transfer tax entered into force on 1 January 2024, and the transfer tax treatment of business transfers also changed. The amended act is applied retroactively on business transfers conducted on or after 9 October 2023.

A business transfer is an arrangement where a limited liability company transfers either all its assets, liabilities and balance-sheet reserves or those related to a specific business entity to another limited liability company that will continue the transferred business operations. In exchange, the transferring company will be given shares of the recipient company. The recipient company is legally obligated to continue the business operations that were transferred to them.

A business transfer is exempt from transfer tax if it fulfils the requirements for tax exemption in income tax assessment defined in § 52 d of the act on the taxation of business income (Laki elinkeinotulon verottamisesta 360/1968).

If the agreement on business transfer was signed on or after 9 October 2023

• A real estate unit or security can be transferred to an existing corporation that continues the operations such that the transfer is exempt from transfer tax. Previously, the tax exemption only applied to newly established companies.
• The recipient company must file the transfer tax return on the transfer. The agreement on the business transfer must be added as an attachment to the return.
• The recipient company does not need to submit a separate application for transfer tax exemption.

If the agreement on business transfer was signed before 9 October 2023

• In order for the transfer to be exempt from transfer tax, the real estate unit or security must have been transferred to a company that has been newly established for the purpose of continuing the business operations.
• The recipient company must submit an application for transfer tax exemption. The application can be submitted in MyTax.
• If the company receives a decision on transfer tax exemption before the due date for paying the tax, the company does not need to file a transfer tax return or pay the tax.
• If the company has not submitted an application for tax exemption before the due date for transfer tax payment, the company must file a transfer tax return and pay the tax. However, the company can later request a refund of the transfer tax they have paid.

Read more about the requirements for transfer tax exemption (available in Finnish and Swedish, link to Finnish)

Check the due dates for filing and paying transfer tax for each property type