Taxation of accident compensation
Workers’ compensation pensions, rehabilitation allowances and survivor’s pensions are taxable income that require their own tax card. Accordingly, the tax portion of these benefits is withheld by Mela and paid onwards to the tax administration.
Withholding tax 40 percent without a tax card
Tax on your benefits is withheld according to the withholding tax calculated by the tax administration.
According to the tax administration’s guidelines, the withholding tax is 40 percent until we receive a new withholding tax calculated by the tax administration specifically for the benefit.
Amount of benefit will change after submitting your tax card
If we receive a new withholding tax for a benefit that has already been paid to you, we can apply the same withholding tax.
As a result, the amount of withholding tax on subsequent benefit payments may be smaller than expected.
Submitting a new tax card
You can order a new tax card to change the withholding tax for your benefit. Instructions for ordering a new tax card can be found on the tax authority’s website: https://www.vero.fi/en/individuals/tax-cards-and-tax-returns/tax_card/
Remember to provide details about all the benefits, pensions and other income paid to you as a result of your occupational accident or disease so that the tax authority can calculate the withholding tax as accurately as possible.
If you have applied for benefits at the same time from elsewhere, such as Kela, you should apply for a new tax card only once you have received information about all the benefits that will be paid to you.
Validity of new tax cards
Your new tax card enters into force on the date specified on the tax card.
If necessary, make sure that your new tax card will be valid retroactively when applying for it. You will be reimbursed for the excess amount of tax that has been withheld on previous benefit payments only if your new tax card is valid retroactively.
