What is prepaid tax?
Prepaid tax (ennakkovero) is income tax you pay in advance during the tax year based on your estimated business profit. The tax is paid in instalments via OmaVero. For a toiminimi the profit is taxed as personal income; for a limited company as corporate tax.
How is prepaid tax determined?
Prepaid tax is based on an estimate of the tax year’s profit. A new entrepreneur gives the estimate themselves; later the Tax Administration uses prior-year data. The number of instalments depends on the size of the tax.
Adjust the prepayment if your income changes
If your profit rises or falls during the year, adjust the prepaid tax in OmaVero. Too low a prepayment leads to a back tax and interest; too high needlessly ties up your money.
Interest rates and due dates are set yearly. Confirm the current details in OmaVero or with an accountant.
Additional prepayment and back tax
If your profit was higher than estimated, you can pay the missing part as an additional prepayment (lisäennakko). By paying it in time after the financial year ends, you avoid or reduce the interest. If tax remains unpaid, a back tax (jäännösvero) arises, on which interest is charged.
Help with prepaid tax
We estimate your profit and keep the prepaid tax up to date so you avoid surprises and interest — in your language. You see your situation in real time in Vaavo.
Frequently asked questions
- What is prepaid tax?
- Income tax you pay in advance based on your estimated business profit, in instalments via OmaVero.
- How is prepaid tax calculated?
- Based on an estimate of the tax year’s profit. A new entrepreneur gives the estimate themselves, and later the Tax Administration uses prior-year data.
- What if my income changes during the year?
- Adjust the prepaid tax in OmaVero to avoid a back tax or over-paying.
- What if I paid too little prepayment?
- A back tax (jäännösvero) arises with interest. To avoid the interest, you can pay an additional prepayment in time after the year ends.
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