Tax prepayment

What tax prepayment means?

Every start-up business owner comes across the responsible for handling prepayments right from the start. This is one of the important things that needs to be taken care of right away.

Advance tax refers to the tax paid by a business owner on his income. This differs for the employee in that the taxation is based on the application made by the entrepreneur himself and an estimate of the income for the whole year. Similarly, the essential difference is that the payment of the advance tax must be handled by yourself.

On this page, we’ll take a closer look at the most common questions related to prepayments, from applying for an appraisal to filing an appeal and paying additional taxes.

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Amount of prepayments

As we already stated in the introduction, the amount of the prepayments is based on the entrepreneur’s own assessment of the full-year result. In the first year, the decision is based solely on that estimate, but in the following years, the taxpayer will take further action independently and receive new payment instructions based on last year’s result. Therefore, if the income stays the same from year to year, you will do well with the taxpayer’s estimate. If the result of the trade name increases or decreases, you must apply for a change yourself and thereby correct the amount of taxation to the correct level.

Applying for a prepayment tax decision

The application for a prepayments tax decision is made using the taxpayer’s electronic channels.

Applying is very similar to the tax card of the actual employee. At this point, the additional task is only to estimate the income from business activities, the amount of VAT and any possible deductions.

Change in tax prepayment plan

The decision will appear in the same way in your own tax and at the same time you will also receive payment instructions from the taxpayer to pay the monthly down payment based on your application.

A good and accurate guide can be found on the taxpayer’s website.



Change in tax prepayment plan

Changes in prepayment tax can become topical when there is a change in one direction or another in terms of income.

The change takes place in practice in the same way as for the actual first application. At this point, it’s a good idea to note that the form probably already has pre-filled sections, which you can then correct as needed to reflect the new situation. The change must also take into account the income achieved during the current year and the realized reductions.

You can always get help with the change application from us and, if you wish, we will do it for you.

Also included is a link to the taxpayer’s instructions:

Applying for or changing prepayments

Number of prepayments

The amount of advance tax payable is not always the same but is based on a few different factors. The most important thing is the amount of income and its location in the calendar year, on the other hand, change applications can also affect the amount of items to be paid throughout the year.

There is a maximum of one pre-tax item for each calendar month, with a minimum individual pre-tax amount of € 170. If the deferred tax amount becomes smaller, the taxation will be handled after the end of the calendar year.

More information on the number of items can be found on the taxpayer’s website:

Prepayment register

The trade name may or may not belong to the prepayment register. However, belonging is much more common and in practice means that all the above-mentioned application / payment is the responsibility of the entrepreneur himself. If for any reason the company does not want or does not have access to the prepayment register, the payer of the actual salary or work must take care of collecting and paying the advance tax.

The most common barrier to accessing the prepayment register is tax ambiguities or non-payment.

More detailed official instructions can be found here:

The role of the accounting firm with regard to taxes prepayment

When considering options for accounting, you should also consider roles and responsibilities for tax prepayments. Pre-taxation should be taken care of immediately and in this connection it is worth deciding whether to do this yourself or to make use of the expertise of an accounting firm partner.

When using our services, we will take care of the advice on your behalf and, if you wish, we can also make applications, changes and, of course, at the end of the year for evaluation and the provision of instructions for the possible payment of additional taxes.

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