Hi,
Are Toiminimi obliged to file Tax returns (Form 5 ?) in case annual earning is less, for e.g. below 300 €?
Would it be usually sufficient to indicate this in personal tax returns?
Nick
Tax returns for Toiminimi
Re: Tax returns for Toiminimi
I'm not sure, I suggest you send an email enquiry to the tax people at www.intofinland.fi
You should get a reply within a day or two.
Give as many details as you can when you send in your question.
You should get a reply within a day or two.
Give as many details as you can when you send in your question.
Re: Tax returns for Toiminimi
Yes. You must return the form Y5 regardless of income (including if you have negative* income). The only difference your income level makes is whether or not you also have to return regular VAT forms (over ~8500) or pay YEL (over ~6500). A toiminimi is not personal income in the administrative sense - you are your company, while simultaneously being an individual with a tax card. The only things that your two parts have in common is total income, where income tax (ennakkovero) is calculated based on the total from tax card + toiminimi. Everything else is seperate.
Negative income is possible and probably quite common at your level - if you are paying for an office space, or making any other business-related expenses claims against your company (electricity, phone bills, office supplies, and so on) then this can easily outstrip your income at the beginning. You might earn 100/month at first but your expenses are 2000 euros for buying all your start-up equipment, this will leave you with a final income of negative 800 (1200 - 2000 = -800). You are obliged to declare any business result in the Y5 at year-end. Ditto VAT; if you apply for VAT but have no earnings for your VAT period, you still have to return a zero-figure VAT form stating this. One thing about Finland, if you ever wonder "do I need to return these forms?", the answer is almost always yes.
Negative income is possible and probably quite common at your level - if you are paying for an office space, or making any other business-related expenses claims against your company (electricity, phone bills, office supplies, and so on) then this can easily outstrip your income at the beginning. You might earn 100/month at first but your expenses are 2000 euros for buying all your start-up equipment, this will leave you with a final income of negative 800 (1200 - 2000 = -800). You are obliged to declare any business result in the Y5 at year-end. Ditto VAT; if you apply for VAT but have no earnings for your VAT period, you still have to return a zero-figure VAT form stating this. One thing about Finland, if you ever wonder "do I need to return these forms?", the answer is almost always yes.