Tax Return Sheets

[raamv]

Yup, A healthier cashflow is better than worrying about interest free loan that you get back without the interest anyways..

[peteh]

If you are able to calculate the deduction, then you are able to deduct it at source thereby reducing your tax %.

Yup, this is the way to do it, use of the online calculator at vero.fi should give a reasonable steer to end up the year about even. I understand peteh's point about avoiding a large bill for back-tax, however to me it doesn't make sense to intentionally overpay tax too much. Yes you get a small windfall but it's still your own money. Much better to get the sums right to begin with than give the vero an interest-free loan from your own pocket.

I think its pretty hard to get your tax bang on every year. I am usually get back around 200-300 euros each year. I tend to put my percentage up as I sometimes get additional production bonuses which vary from month to month. It just makes the whole practice a little less painfull.

[Karhunkoski]

If you are able to calculate the deduction, then you are able to deduct it at source thereby reducing your tax %.

Yup, this is the way to do it, use of the online calculator at vero.fi should give a reasonable steer to end up the year about even. I understand peteh's point about avoiding a large bill for back-tax, however to me it doesn't make sense to intentionally overpay tax too much. Yes you get a small windfall but it's still your own money. Much better to get the sums right to begin with than give the vero an interest-free loan from your own pocket.

I think its pretty hard to get your tax bang on every year. I am usually get back around 200-300 euros each year. I tend to put my percentage up as I sometimes get additional production bonuses which vary from month to month. It just makes the whole practice a little less painfull.

Yup, don't get me wrong, I see the advantage in not having a nasty surprise, however I just prefer to stick a coupla hundred smacker away somewhere when the bonus comes, that way I make the (however small) interest and in the end I can either cover the additional tax or enjoy a "coupla hundred smacker windfall". It just depends how you work your finances. Personal choice I guess.

[Hank W.]

My dad used to have a "full benefit" company car, and as he had a log when I was 18 and took a spin, I couldn't "sneak off" with daddys car without filing my misdeeds. Thats such a PAS system as you need to calculate the "private km" and "company km" separate.

[milou]

and if you've got kids, remember to fill section 8, "alijäämähyvitys"

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8 TAX CREDIT FOR DEFICIT IN CAPITAL INCOME
8.1 I claim in my tax credit: Child increase for child(ren)
Write the number of children making you entitled for the increased tax credit. There are two alternatives:
One spouse can have the entire increase, or both spouses can share the increase. The spouses
can agree upon this freely.
8.2 I give permission to transfer surplus tax credit to my spouse
Tick the box if you want the credit to be transferred. This is relevant in cases where one spouse has
not enough income and taxes from which to subtract the tax credit. The spouses have to request for
the transfer of this amount. The final deadline to do so is 31 October 2008.


Tax credit for the Deficit in capital income
The term ’deficit in capital income’ refers to a situation where the deductions from capital income
are higher than the income itself. Example: A taxpayer can have a high annual home-loan interest
cost, but no capital income at all, or only a low capital income from investments, shares, rental
contracts, etc. There is a tax credit available in this situation: 28% (30% for first-time homebuyers)
will be credited against the taxpayer’s income taxes on earned income. This is called the ’Tax credit
for the Deficit in capital income’ (alijäämähyvitys; underskottsgottgörelse).

The ceiling for this tax credit is €1,400.00. However, families with children are entitled to higher tax
credits: One child raises the ceiling by €400, two or more children raise the ceiling by €800.
The ceiling for this tax credit does not concern interest on loans taken up for the purpose of buying
shares in the company where the taxpayer is among key shareholders or businessmen. Similarly,
the ceiling does not concern situations of tax-deductible loan repayments during 2005-2009 in
connection with shareholder borrowing.

If the taxpayer does not have enough income to make the tax credit possible, it can be carried over
to the following tax years. The taxpayer can thus receive the credit against future taxes on capital
income. Losses relating to the capital-income category are deductible against capital income only.
They can be carried forward to 10 upcoming tax years, and deducted against future capital income

*m*

[chickensexer]

Thank you for clarifications, Hank and All.

One more question though:

I just filled in transporttation costs at vero.fi online. Does it mean that I'm done or do I still need to do something about the paper version I've got and mail it back to Vero before May 8?

[Hank W.]

If the travel expenses were all, then thats it.

[sbk]

2. If the giro slips are empty, then look at the white page with a lot of black text. (it can continue onto the reverse) the last entry says PALAUTETTAVAA and Veronpalautus: that is how much you get back. If it says MAKSETAAN TILILLE make sure its your account number.

3. If you haven't given the tax office a bank account number, you should as then the tax return is paid into your account. Otherwise you get a letter the next week everybody else has gotten their money to go to Nordea to queue with the grannies...

Hi, thanks for excellent info...got my forms today and first time filing in Finland, dont understand anything on the 'white' page except what Hank has told here.

I dont see MAKSETAAN TILILLE on my form, so I guess my bank info is not with tax office. Can I now inform Vero about my bank account and they will pay to account or do they send me a cheque for refund ?( I seem to be getting some ) How do I update my bank info? Do I visit Vero office?

Thanks.

[Hank W.]

You can do it online, but theres a place on the "blue sheet" with the details. They will usually send you a 2nd notice sometime August saying "we don't have your account number blah deh blah". But on the back side theres a spot 15 for "pankkiyhteys" . You just put the finnish bank account number in the first slot, and you need to sign in the bottom. And while you're at it remember to deduct your travel expenses if you can in 3.5

[mpjacko]

I,m very annoyed with my tax return sheet.

its says i will be returned 535 (a lot of money for me) euros however as i only move to finland last july, it means i was in the country for 5 months before the end of the tax year. so i am expecting a letter saying, our apolgies, your not geting anything. So i can't wait to complain esp after not being allowed to have access to unemployment money untill after being in the country for 6 months because i was not married to my fiancee after leaving the uk to be with her.

[sbk]

You can do it online, but theres a place on the "blue sheet" with the details. They will usually send you a 2nd notice sometime August saying "we don't have your account number blah deh blah". But on the back side theres a spot 15 for "pankkiyhteys" . You just put the finnish bank account number in the first slot, and you need to sign in the bottom. And while you're at it remember to deduct your travel expenses if you can in 3.5

Thanks a lot...will do that also!

[Cod]

..and how about this one..

Costs related to the tax credit for payments for domestic work

Write the amount of costs related to this tax credit for payments for home maintenance and repair.The de minimis is €100.00 which the calculator will subtract automatically. The maximum amount of the credit €2,300.00 can only include €1,150.00 of home maintenance/repair.

..nice way to encourage people to keep their house in good nic. Not sure how it works in terms of improvement - ie we replaced our kivitukka carport with a laid-brick one - the kivitukka was dusty and messy, but I wonder if Vero brings this under this particular tax credit?

[raamv]

Only 60% of the labor cost is deductible from remodeling work done by a company or domestic work done by someone/company.

[debonaire]

Only 60% of the labor cost is deductible from remodeling work done by a company or domestic work done by someone/company.

Hi raamv,does it include the monthly maintenence fee paid to the housing company..hoitovastike...Is it tax deductible? probably a dumb question but just wanted to clarify...
Actually the housing company has just changed all the windows and doors of our house...which resulted in an additional 45€/kk Rahoitusvastike...and what i have read somewhere is that when you invest money which increases the value of the house,you can claim tax deduction...So is this rahoitusvastike tax deductible by any chance...

[sotka_]

Hi raamv,does it include the monthly maintenence fee paid to the housing company..hoitovastike...Is it tax deductible?

No.