Late-paid taxes accrued some 8.7 million euros in interest for taxpayers last year, according to the Finnish Tax Administration. This marked an increase of 1.5 million euros compared to 2021.
"Despite the majority being diligent taxpayers, unexpected remainder tax payments can sometimes linger for a considerable period. For instance, around 45,000 individuals still have outstanding fines from the previous year's due date," said Juha Villman, senior inspector at the Finnish Tax Administration.
The majority of the late-payment interest, 7.7 million euros, was accrued on the so-called remainder tax, which may need to be paid by a taxpayer if the pre-paid taxes were not sufficient to cover their actual tax liability for the year. The interest for overdue payments is seven percent.
Late tax payments have increased in recent years. Last year, 320,000 customers paid their remainder taxes late and 550,000 individuals filed their property taxes late, the Tax Administration reported.
The deadline for paying the remainder of taxes for approximately 289,000 individuals in Finland is next Tuesday, 1 August. Additionally, 1.9 million property owners must pay their property taxes by 7 August.
To avoid late fines and interest fees, the Finnish Tax Administration advises taxpayers to use e-invoices, which can be set up through online banking.