Pension taxation

Request a pension tax card

The earnings-related pension is taxable income and therefore a pension tax card is needed for withholding tax from the pension. Your pension provider cannot request the tax card on your behalf, which means that you have to order the card from the Tax Administration yourself. Further, the pension provider cannot use a salary tax card or a card issued for any other kind of income for the tax deduction of your pension.

Request the pension tax card from the Tax Administration as soon as possible after receiving your pension decision. Ask the Tax Administration to send the tax card directly to Veritas. You can request the tax card

in the MyTax online service at vero.fi/en/e-file/mytax
by calling the telephone services of the Tax Administration on 029 497 050

If you receive, in addition to the pension, wages or other earnings, you need separate tax cards for them. Request these cards, too, in the MyTax online service or by calling the Tax Administration telephone services.

When requesting the tax card, have at hand your pension decision that states the amount of your pension and the details of your pension provider. For calculating the withholding tax percentage of
your pension, you also need to provide information on your other income and taxes as well as possible tax deductions.

Why is 40 per cent tax withheld from my pension?

If we do not have your pension tax card, we are required to withhold 40% tax from your pension. We cannot use a salary tax card or a card issued for any other kind of income for the pension. Retroactive payments and lump-sum payments are subject to 40% withholding of tax, too. When we have received your pension tax card, we will refund any excess tax withheld from your pension. If the calendar year has already ended by the time your pension tax card arrives, we cannot refund the excess tax. Instead, it will be credited to you in your final tax assessment.

If your pension starts late in the year

If your pension starts on 1st November or later, remember to request a tax card both for the year when the pension starts and for the following year. The taxation can only be corrected during the year in which the pension has been paid.

Request a new tax card when the pension amount changes

If the amount of your pension changes due to other reasons than the yearly index adjustment, you must request a new pension tax card. For example, when you are granted a full old-age pension after having received a partial old-age pension, you need a new tax card for the full pension. Also remember to request a new tax card if the amount of your pension changes significantly when you are issued the final decision after an interim decision.

Can I raise my tax rate?

If you wish us to withhold tax from your pension at a higher rate than is stated on your tax card, fill in the form for raising your tax rate in the online service.

When you are retired, your tax details are transmitted automatically

If you have received the pension already in the previous year, the Tax Administration will automatically calculate your tax rate for the following year and send it to us. The Tax Administration informs your new tax rate directly to your pension providers and informs you of it as well. You do not need to send this tax card to us.

Paid pensions are reported to the Incomes Register

Veritas reports the pensions and benefits that have been paid to you to the Tax Administration, and these details can be viewed in the Incomes Register. You can view your income details in the Incomes Register online service.