Ennakkovero

Ennakkovero is income tax paid during the year on estimated profit. A Toiminimi pays it as part of the owner’s personal taxation. The estimate includes business profit and other income such as wages and Starttiraha. An Osakeyhtiö pays its own corporate prepayments on the company’s estimated taxable profit.

A new business states the first-year estimate on the founding notification or later in OmaVero. Later years are usually based on the latest tax return. You can raise or lower the prepayment during the year if the estimate changes.

If you pay too little, you pay residual tax (jäännösvero) after assessment. If you pay too much, you receive a refund.

This is not ALV and not YEL. Those are separate payments.

A small private trader may in some cases have business income taken into account on a tax card instead of separate prepayments. The Tax Administration decides this. An Oy cannot treat company profit as the owner’s tax-card income.

Practical advice

Estimate profit (income minus deductible costs), not turnover.

When a large customer starts or stops, change the prepayment in OmaVero in the same month if you can.

Where to seek advice

The best place to start is OmaVero (Finnish Tax Administration): https://www.vero.fi/en/e-file/mytax/

Apply for prepayments, change them and pay them in OmaVero. The written guide for new entrepreneurs is https://www.vero.fi/yritykset-ja-yhteisot/yritystoiminta/uusi-yritys/yrityksen-perustajan-muistilista/ . Uusyrityskeskus can help you make the first-year profit estimate: https://uusyrityskeskus.fi/yrityksen-perustajalle/palvelumme-alkavalle-yrittajalle/

All the necessary links

OmaVero — Apply, change and pay.
vero.fi — New entrepreneur tax checklist.
YTJ.fi — Ennakkoperintärekisteri on the founding form.