Finland – tax measures in response to COVID-19

On 15 March 2020, the Finnish Tax Authorities published actions to support companies with challenges they might face during the COVID-19 epidemia.

There have been no changes to filing or payment due dates, however the Finnish Tax Authorities have listed the following measures:

  • Extension can be applied for filing of the corporate income tax return.
    Penalty related to late filing of the corporate income tax return may not be collected.
  • Companies can apply for payment arrangement for taxes and possible late payment interest may not be collected.
  • The Finnish Tax Authorities enhance the handling of refunds related to value added taxes (VAT).
  • Penalty related to late filing of the VAT return may not be collected.
  • In cooperation with the Ministry of Finance, the Finnish Tax
  • Authorities are looking into possible reliefs related to payment arrangements.

The Finnish Tax Authorities are reminding companies to amend the assessed advance taxes where needed. The authorities are also enhancing the handling of the above listed matters.

Applying for extension for filing of tax returns and collection of late filing penalties

Companies can apply for extension for corporate income tax return filing based on specific reasons of which one is a situation where a key person has fallen ill and the company cannot file the tax return by the statutory due date. Extension can be applied for either electronically in MyTax or on a paper form. Please note that the extension needs to be applied for latest on the statutory due date.

There is no possibility to apply for extension for filing of the VAT return, however in case a VAT or corporate income tax return is filed late, companies can request that the Finnish Tax Authorities not collect the late filing penalty.

Payment arrangements

If a company faces difficulties with making their tax payments on time, a payment arrangement can be applied for on the phone or in MyTax. In certain circumstances, for example where a key person has fallen ill, the company can request the Finnish Tax Authorities not to collect late payment interest on tax payments.

Possible reliefs related to payment arrangements are under discussion and the Finnish Tax Authorities will release more information in due course.

For more information please free to contact Maarit Pokkinen, maarit.pokkinen@pwc.com

Image Source: http://unsplash.com

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