Advance tax: reporting and paying it in MyTax (OmaVero)
The Zen service does not cover advance tax. Apply for it in MyTax and pay it from your Holvi account. If your income estimate or payment details change, update any scheduled payments.
Follow these steps:
- Register for the Prepayment Register
- Estimate your annual income
- Apply for advance tax in MyTax
- Check your tax decision in MyTax
- Pay by the due date
- Update your estimate if it changes
What is advance tax?
Employees have tax withheld from their salary by their employer. As a sole trader, you pay income tax yourself to the Tax Administration as advance tax.
The Tax Administration calculates advance tax based on your estimated result for the financial year and sends you invoices with the payment due dates.
After the financial year ends, your final tax is calculated. If you paid too little, you pay back tax; if you paid too much, you receive a refund. Future advance tax is generally based on the previous year’s result.
Advance tax for a new business
After setting up your business and joining the Prepayment Register, estimate your first financial year’s result and apply for advance tax. If the result is expected to be close to zero, you do not need to apply.
Because a new business’s result can be difficult to predict, monitor it during the year. If necessary, update your advance tax estimate to avoid paying back tax later.
How is advance tax calculated?
The Tax Administration calculates advance tax based on your estimated taxable income.
Your taxable business result is sales minus deductible expenses. Money withdrawn for personal use is not an expense and does not reduce the result.
Your business result is included in your personal tax calculation. Other income, such as salary, and applicable deductions also affect the amount of advance tax.
Part of a sole trader’s result may be allocated to a spouse who works in the business. In that case, both you and your spouse may have advance tax to pay.
How to estimate your taxable income
1. Estimate your business result for the rest of the year: sales minus expenses.
2. Add salary earned outside your business since the start of the year and the tax withheld. You can find this on your latest payslip.
3. Estimate any further salary you will receive during the year.
4. Add other income, support and benefits, such as a start-up grant, housing benefit or student grant.
How to apply for advance tax
Apply in MyTax at https://www.vero.fi/sahkoiset-asiointipalvelut/omavero/. You can update your application during the year.
- Log in to MyTax.
- Under Personal income tax, select Tax card and advance tax.
- Select Apply for advance tax.
- Complete or update the required details.
- Check the application and submit it to the Tax Administration.
After you submit your application
Once your application has been processed, you can view your advance tax decision and instalments in MyTax.
Pay each instalment by its due date. You can schedule payments in advance from your Holvi account. Select the day before the due date to help ensure the payment arrives on time.
If your estimate changes, update it in MyTax. The Tax Administration will issue new invoices. Also update any scheduled payments.
Use the monthly income statement we send you to monitor your business result. If it differs significantly from your MyTax estimate, update the estimate and apply for advance tax again.
If your income estimate changes
- Report the new estimated result in MyTax.
- Check your new tax decision in MyTax.
- Schedule the remaining advance tax payments from your Holvi account.
What if I’m not registered for prepayment?
Check your registration status in the YTJ service by searching for your business ID. If you are not registered, join the Prepayment Register by submitting an electronic notification of changes in the YTJ online service.