Failure to pay taxes and other statutory payments
Your company may sometimes face a situation in which it is unable to pay its taxes or statutory payments on time. If that happens, contact the Tax Administration, the Employment Fund, the employment pension insurance company or the insurance company and try to negotiate an extension to the payment periods. Never skip any periodic notices, taxes or statutory payments.
If you file your company’s tax return for taxes or statutory payments too late, you will receive a reminder. Usually, you will also have to pay a late payment charge, a negligence penalty or a tax penalty. If you do not file them in spite of the reminder, your company will be ordered to pay the taxes and statutory payments according to an estimate.
If there is a delay in paying your company’s taxes or statutory payments to the Tax Administration, you have to pay late-payment interest in addition to the actual tax or payment. In the case of asset transfer tax and excise duty your company will have to pay additional tax. Penalty interest in turn is paid on delayed real estate and car taxes. Check the amount of the taxes and payments that are payable to the Tax Administration from the MyTax service on the day of payment. The Tax Administration does not send a reminder for unpaid taxes or payments. Instead, a demand for payment is included in the monthly summary.
If you do not pay your company’s statutory payments to the Employment Fund, employment pension insurance company or insurance company in time, you will usually have to also pay late-payment interest.
If your company has unpaid taxes or statutory payments payable to the Tax Administration, you will first receive between one and three demands for payment as part of the monthly summaries. If you do not pay the taxes or the payments by the due date stated in the last demand for payment, the Tax Administration will transfer them to enforcement. It will also publish them in the tax debt register. Furthermore, the Tax Administration will send your company’s tax debt information to the protest list.
If you do not pay the statutory payments payable to the Employment Fund, the employment pension insurance company or the insurance company, the payments will usually be transferred to enforcement as well. Moreover, they are also likely to be published on the protest list.
A failure to pay taxes or statutory payments may result in your company getting a payment default entry in the credit information file. Usually, it also prevents your company from participating in public procurements. A payment default entry may also make it considerably more difficult to get external funding.
If you do not pay your company’s taxes or statutory payments payable to the Tax Administration in time, you will receive a demand for payment as part of the monthly summary. The demand for payment gives your company some additional time for the payments. However, in that case, the taxes and payments will incur interest.
If you are unable to pay the taxes or the payments by the due date stated on the demand for payment, you can go to the MyTax service and apply to the Tax Administration for a payment arrangement. If the Tax Administration agrees on the payment arrangement, it will draw up a payment programme for your company and give you some more time for the payments. Pay the taxes or payments including the interest to the Tax Administration according to the instructions given to you.
While your company has a payment arrangement in force, the Tax Administration will not transfer its taxes to enforcement. It will also not send the debts to the tax debt register or to the protest list. Moreover, your company will not be removed from the prepayment register.
If you cannot pay your company’s other statutory payments in time, try to negotiate longer payment periods for them with the Employment Fund, the employment pension insurance company or the insurance company.