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The Prepayment Register is the Finnish Tax Administration’s register that contains information on the operators who can be paid without withholding tax on the compensation. Registration in the Prepayment Register is not mandatory. Upon application, the Tax Administration enters individuals, companies and organisations engaged in business activities, agriculture or other income-generating activities into the Prepayment Register.
A foreign company can be entered into the Prepayment Register when it has a permanent establishment in Finland or if the company is established in a country with which Finland has a tax treaty for the elimination of double taxation.
The prepayment registration affects the advance payment of taxes. The purpose of entering the Prepayment Register is to prove that the payor does not have to withhold tax on the compensation paid to the operator, as the registered operator is responsible for the prepayment of taxes.
Do the following
A company can enter into the Prepayment Register either in connection with the start-up notification or at a later time.
If you submit a start-up notification electronically in the Business Information System (BIS), your company can also request entry into the Tax Administration’s registers at the same time. If you submit a start-up notification on paper, you can use the same form to enter your company into the Tax Administration’s registers.
If you do not enter your company in the Prepayment Register at the time of establishment, you can do so later in MyTax as soon as the company has a Business ID.
Deleting data from the register
If the entire business operations are terminated, submit a termination notification in the BIS service. You can use the same notification to withdraw from the Prepayment Register.
If a foreign company ceases to operate in Finland, submit a termination notification. You can obtain a paper form from the BIS service. You can use the same notification to withdraw from the Prepayment Register.
To whom and on what terms
Some applicants cannot be entered in the Prepayment Register. For example, any essential non-compliance with tax or accounting obligations may be an obstacle.
The Prepayment Register has no effect on whether the paid compensation is regarded as wages. The Prepayment Act defines if a payment is treated as wages.
The Tax Administration can remove an operator from the Prepayment Register if their activity has ended, if the activity has not even started or if the activity is considered leisure activities. The Tax Administration may also remove an operator from the Prepayment Register due to negligence.
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