What Is the Annual Report in Finland and Why Does Your Finnish Oy Have to File One?
In Finland, the annual report is called tilinpäätös. It is a legally required financial document that every Finnish limited company (osakeyhtiö, or Oy) must prepare at the end of each financial year. It is not optional and it is not just for large companies. Even a small, foreign-owned Finnish Oy with minimal activity must produce and file a tilinpäätös.
The tilinpäätös is the primary document through which Finnish authorities, shareholders, creditors, and business partners assess the financial health and compliance of your company. Filing it correctly and on time is one of the most fundamental obligations of running a Finnish company.
For foreign founders in particular, this requirement is often underestimated. The Finnish system has specific rules about what must be included, when it must be filed, and who must sign it. Getting any of these wrong can result in penalties or damage to your company's legal standing.
What Must Be Included in the Finnish Annual Report (Tilinpäätös)?
The Finnish Accounting Act (kirjanpitolaki) sets out exactly what a tilinpäätös must contain. For a standard Finnish Oy, the annual report must include all of the following components:
| Component | What It Covers |
|---|---|
| Balance sheet (tase) | A snapshot of the company's assets, liabilities, and equity at the financial year end |
| Income statement (tuloslaskelma) | A summary of income, expenses, and profit or loss over the financial year |
| Notes to the accounts (liitetiedot) | Explanatory information required by law that provides context for the figures in the balance sheet and income statement |
| Board of directors' report (toimintakertomus) | Required for larger companies. Covers business developments, key risks, and future outlook. Smaller companies may be exempt. |
| Auditor's report (tilintarkastuskertomus) | Required only if the company meets the audit thresholds. See audit section below. |
Does a Finnish Oy Need to Prepare Accounts in Finnish?
The tilinpäätös must be prepared in Finnish or Swedish, the two official languages of Finland. English is not accepted as the sole language for the official filing. If your accountant prepares accounts in English for internal use, a Finnish or Swedish version must still be produced for the official submission.
Annual Report Filing Deadline in Finland: When Must a Finnish Oy Submit Its Tilinpäätös?
The tilinpäätös must be prepared within four months of the financial year end. For the majority of Finnish companies that use a calendar year (1 January to 31 December), this means the annual report must be ready by 30 April of the following year.
| Financial Year End | Tilinpäätös Deadline | Tax Return Deadline |
|---|---|---|
| 31 December 2025 | 30 April 2026 | 30 April 2026 (or end of May with tax advisor) |
| 31 March 2026 | 31 July 2026 | 31 July 2026 |
| 30 June 2026 | 31 October 2026 | 31 October 2026 |
| 30 September 2026 | 31 January 2027 | 31 January 2027 |
* Companies using an authorised tax advisor (veroasiamiehen valtuutus) may receive an automatic extension to the end of May for the tax return filing.
It is important to understand that in Finland, the tilinpäätös deadline and the corporate tax return deadline fall at the same time. Both are driven by the financial year end date. Preparing one without the other is not possible in practice, which is why most foreign-owned Finnish companies work with a local accounting firm to handle both together.
Two Deadlines Foreign Founders Often Confuse
The tilinpäätös must be prepared and approved within 4 months of the financial year end. The filing with PRH is free of charge if submitted within 8 months of the year end. This does not mean you have 8 months to prepare it. The accounts must be finalised, signed by the board, and approved at the general meeting within the 4-month window. The 8-month deadline is simply the point after which PRH begins charging a late filing fee.
Most Common Deadline
December year end companies must have their tilinpäätös prepared and board-approved by 30 April 2026.
Not Sure How to File?
The process involves PRH, Vero, board signatures and Finnish-language documents. Let 1Office Finland handle it for you so nothing is missed.
Tax Return Filed Separately
The veroilmoitus is filed with Vero, not PRH. Both are due within 4 months of your financial year end and must be prepared from the same finalised accounts.
Who Must Sign
All board members and the managing director must sign before the tilinpäätös can be filed. For foreign boards, collecting signatures remotely takes time. Plan ahead.
Penalties for Late Filing of the Annual Report in Finland: What Happens If You Miss the Deadline?
Finland takes annual report compliance seriously. The Finnish Patent and Registration Office (PRH) monitors filing deadlines and has the authority to take enforcement action against companies that fail to file on time.
- PRH sends a formal notice requiring the company to file within a set period. Failure to respond can result in a financial penalty (uhkasakko).
- Repeated non-compliance can lead to the company being placed in a compulsory dissolution process.
- A company that has not filed its annual report loses credibility in the Finnish business register, which is publicly visible to clients, partners and lenders.
- Directors of a Finnish Oy can be held personally responsible for ensuring the tilinpäätös is prepared and filed correctly and on time.
Important for foreign founders: Being based outside Finland does not exempt your company from these obligations. PRH applies the same rules regardless of where the owners or directors are located. If your Finnish Oy has not filed its tilinpäätös, it is at risk regardless of whether you are aware of the deadline.
Does Your Finnish Oy Need an Audit? Statutory Audit Requirements in Finland Explained
Not every Finnish company is required to have its annual report audited by a certified auditor (tilintarkastaja). The obligation depends on the size of the company. Under Finnish law, a statutory audit is required if your Finnish Oy exceeds at least two of the following three thresholds in the most recent completed financial year:
| Threshold | Limit |
|---|---|
| Balance sheet total | Over 100,000 EUR |
| Net turnover | Over 200,000 EUR |
| Average number of employees | More than 3 during the financial year |
If your company is below these thresholds, a statutory audit is not required. However, the articles of association (yhtiöjärjestys) of your company may still require one, and shareholders may also request an audit regardless of size.
First Year Companies and the Audit Requirement
A newly incorporated Finnish Oy does not need a statutory audit in its first financial year if it does not meet the thresholds above. However, if the company's articles of association require an auditor to be appointed, that requirement applies from the very first year of operation. It is worth reviewing your articles of association carefully when you incorporate.
What Does a Finnish Statutory Audit Cover?
When an audit is required, a certified public accountant (KHT auditor) or an approved auditor (HT auditor) must review the tilinpäätös and issue an auditor's report (tilintarkastuskertomus). This report becomes part of the annual report package that is filed with PRH. The audit must be completed before the tilinpäätös is signed and submitted, which means you need to engage your auditor well in advance of the deadline.
Annual Report in Finland vs Other Nordic Countries: What Foreign Founders Often Get Wrong
Foreign founders who have previously operated companies in Sweden, Estonia, or other European countries often arrive in Finland with assumptions that do not apply here. These are the most common misunderstandings we see:
- Assuming a dormant Finnish Oy does not need to file. In Finland, even a company with zero activity during the year must prepare and file a tilinpäätös. There is no simplified dormant company return equivalent to some other jurisdictions.
- Filing only with the tax authority and not with PRH. In Finland, the tilinpäätös must be filed with both the Finnish Tax Administration (Vero) and the Finnish Patent and Registration Office (PRH). These are two separate submissions.
- Missing the four-month window because the financial year end was not tracked. If your Finnish Oy has a non-standard financial year end, the four-month deadline applies from that date. Many foreign founders lose track of this.
- Thinking the annual report is the same as the tax return. The tilinpäätös and the veroilmoitus (corporate tax return) are separate documents filed with separate authorities, even though they are based on the same underlying financial data.
How to File the Annual Report for a Finnish Oy: Step by Step Process for Foreign Companies
The process for preparing and filing the tilinpäätös for a foreign-owned Finnish company typically follows these steps:
| Step | What Happens | Who Is Responsible |
|---|---|---|
| 1. Bookkeeping finalised | All transactions for the financial year are recorded and reconciled | Your accountant |
| 2. Draft tilinpäätös prepared | Balance sheet, income statement and notes compiled in accordance with Finnish Accounting Act | Your accountant |
| 3. Audit completed (if required) | Certified auditor reviews the accounts and issues the auditor's report | KHT or HT auditor |
| 4. Board approval and signing | Board of directors meets to approve and sign the tilinpäätös | Company directors |
| 5. Filed with PRH | Tilinpäätös submitted to the Finnish Patent and Registration Office via online service | Your accountant or company |
| 6. Corporate tax return filed | Veroilmoitus submitted to the Finnish Tax Administration (Vero) based on the finalised accounts | Your accountant |
Practical tip for foreign founders: Steps 4 and 5 require the physical or electronic signatures of all board members. If your board members are located outside Finland, make sure you have a process in place to collect signatures remotely well before the deadline. This step is often the one that causes delays.
Corporate Tax and the Finnish Annual Report: What Foreign-Owned Finnish Companies Pay in 2026
The tilinpäätös forms the basis for calculating your Finnish corporate income tax. Here are the key facts for foreign-owned Finnish companies in 2026:
| Topic | What You Need to Know |
|---|---|
| Corporate tax rate 2026 | Flat rate of 20% on net profits. Applies to all Finnish limited companies for the 2025 and 2026 financial years. |
| Upcoming rate change | Finland has announced a reduction to 18% from January 2027. This does not affect filings for the 2025 or 2026 financial years. |
| Prepayment system (ennakkoverot) | The Finnish Tax Administration (Vero) estimates your tax in advance and sends prepayment notices based on previous year figures. If your actual profit differs significantly, you can request an adjustment through the MyTax online service. |
| How tax is calculated | Tax is calculated on the net profit shown in the tilinpäätös after allowable deductions. Your accountant prepares the tax calculation as part of the veroilmoitus filing. |
| Who files the tax return | The veroilmoitus is a separate document filed with Vero. It is based on the finalised tilinpäätös and must be submitted within 4 months of the financial year end. |
Let 1Office Finland Handle Your Tilinpäätös From Start to Finish
Bookkeeping, annual report preparation, PRH filing, corporate tax return, audit coordination. We take care of every step so your Finnish Oy stays compliant and you can focus on your business.
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