You can supplement the prepayment amount after the tax year by making an additional prepayment

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.

For individual taxpayers (private individuals, self-employed individuals), the minimum additional prepayment is €170. For corporate entities, the minimum additional prepayment is €500. Smaller amounts must be paid as back taxes after the final tax assessment.

When can I make an additional prepayment?

You cannot make an additional prepayment until after the tax year has ended. During the tax year, you cannot make an additional prepayment to supplement your tax payments. Instead, you must request a prepayment calculation or a change to your prepayment amount.

For individual taxpayers, the tax year is the calendar year. Individuals can make additional prepayments without late-payment interest with relief up until the end of January.

If the due date of the additional prepayment is after 31 January, you will also have to pay late-payment interest with relief. Read more about late-payment interest with relief.

If the accounting period of a self-employed individual is other than the calendar month, the tax year comprises all the accounting periods that end during the calendar year.

For corporate taxpayers, the tax year is usually the accounting period. If the accounting period is not the calendar year, the tax year is determined by the end date of the accounting period. The tax year comprises all the accounting periods that end during the calendar year. Corporate taxpayers can make additional prepayments without late-payment interest with relief for a period of one month after the end date of the tax year.

If the due date of the additional prepayment is a later date, you will also have to pay late-payment interest with relief. Read more about late-payment interest with relief.

How to request and make an additional prepayment

You must submit an application for an additional prepayment before actually paying it so that the payment can be allocated to the right tax.

Individual taxpayers (private individuals, self-employed individuals)

Corporate taxpayers (limited liability companies)

Note: If the due date you select for the additional prepayment is the last day of the month, the Tax Administration will use your other unused payments or refunds to cover the additional prepayment at the end of the month.

Example: Your company pays a VAT of €1,000 for March. The due date for the March VAT is 12 May, but you pay it in advance on 20 April. Because the VAT has not fallen due yet, the payment cannot be used for it at this point. The payment must wait for the due date.

In April, you make an additional prepayment of €1,500 to supplement your company’s income tax amount. The due date you select is 30 April. It takes 1–2 days for the payment to be transmitted to the Tax Administration, so the payment does not arrive on the day it is paid. Because of this, the €1,000 you paid on 20 April will be used to pay the additional prepayment on 30 April. Consequently, you must pay the VAT for March again.

When your payment of €1,500 arrives at the Tax Administration, €500 will be used to cover the rest of the additional prepayment. Part of the payment will be used for late-payment interest with relief, calculated for the period 1 February–30 April. The remaining amount will be used for your other income taxes. If you have no such taxes, the amount will be refunded to you.

Frequently asked questions

Interest on additional prepayments and interest on back taxes are calculated differently. When late-payment interest with relief is imposed on back taxes, €20 is subtracted from the interest. However, the maximum amount to be subtracted equals the sum of the interest. When late-payment interest with relief is imposed on an additional prepayment, no subtraction is made. If the tax is no more than approximately €1,200, it may be profitable to pay it as back taxes. 

Example 1: Making additional prepayments is more profitable

The prepayments made and tax withheld during the year are not enough to cover the entire year’s income tax. You receive a tax decision stating that you must pay €10,000 in back taxes. Because your tax assessment is completed in June, late-payment interest with relief is calculated on your back taxes as of 1 February until the due date of the first instalment of the back taxes, i.e. 1 August. The late-payment interest with relief is €10,000 x 182 days x 2% / 365 = €99.73. €20 is subtracted from the late-payment interest with relief calculated on the back taxes, so the payable amount is €10,079.73.

If instead of back taxes you are requesting an additional prepayment of €10,000 with a due date of 1 April, for example, the late-payment interest with relief calculated on the additional prepayment is €10,000 x 60 days x 2% / 365 = €32.88. You do not have to pay any late-payment interest with relief at all if you pay all the required income taxes during the tax year or within one month from the end of the tax year.

Example 2: Paying back taxes is more profitable

You receive a tax decision stating that you must pay €1,000 in back taxes. Because your tax assessment is completed in June, late-payment interest with relief is calculated on your back taxes as of 1 February until the due date of the first instalment of the back taxes, i.e. 1 August. The late-payment interest with relief is €1,000 x 182 days x 2% / 365 = €9.97. Because the interest is less than €20, you do not have to pay it. The final amount of back taxes is €1,000.

If instead of back taxes you are requesting an additional prepayment with a due date of 1 June, late-payment interest with relief is calculated for the additional prepayment as of 1 February until the due date of the additional prepayment.  The interest is €1,000 x 121 days x 2% / 365 = €6.63. The total amount payable is €1,006.63 In addition, you will have to pay the amount earlier than if you had waited for the due date of the back taxes.