Here's how to apply for withholding taxes:
1. Log in to MyTax.
2. On your homepage, you'll see "Tax cards and prepayments" under the "Activities" heading. Click it!
3. Next, you can choose the tax year. If you’re applying for prepayment tax for the first time or want to update your income estimate (this can be done during the year as often as your estimate of your business’s annual income changes!), select the current year. You can also declare your income for an upcoming year or apply for an additional prepayment for an already ended tax year if too little tax was paid.
4. With the form that opens, you can already see the income affecting your taxes pre-filled. You can change the information if necessary. Your business income must be filled in under “Other income” and under “Income from business operations”. Later, under “Other deductions,” you can also report tax deductions related to your business.
5. Submit the application after filling in the information.
Here you will find the Tax Administration's instruction with pictures for filling in the application.
Here's how to pay prepayments:
1. After submitting the application, you will receive a new tax decision to your MyTax, and in the future you will see the installment amounts and due dates of your prepayment tax, as well as all payment details, on the MyTax home page.
2. See due dates in MyTax - it may be a good idea to make a reminder of payments on your calendar!
3. Pay your prepayment tax no later than the due date with the payment information you see in MyTax.
4. Add either a prepayment invoice or a receipt for a bank transfer to the UKKO service so that prepayment payments also appear in your accounts. In the case of advance taxes, a receipt from your own online bank is also accepted as a voucher!
You may be wondering about these when filling in your withholding tax application:
- Why does the application show salary income? As a business name entrepreneur, your business income is taxed as your personal income. Therefore, the same form will show all your taxable income - if you have just started a business, you may also have salary income in the same tax year. On the other hand, if you work as a part-time entrepreneur, all your income will always appear on the same form. For the same reason, you also get a payroll tax card when applying for advance taxes!
- How can I estimate my income for the year? Add up your billing for the last two months and multiply it by six to get an estimate of your twelve-month earnings. Earnings may still change in one direction or another over the course of the year, but you can always adjust your prepayments as needed by filling out the application again.
- I am a part-time entrepreneur, can I handle taxes in some other way? You can! Another option is to apply for a new tax card, which also takes into account your company's income. You can do this in exactly the same way as you would normally apply for a tax card.