Issues arising in association with the changeover to the euro are primarily related to the conversion of amounts fixed in kroons and prescribed in the Taxation Act and various tax-related acts, as well as tax amounts to be imposed/declared or already imposed/declared for previous periods.
Rounding in tax accounting
Amounts indicated in kroons in tax-related legislation will be converted into euros in the direction more favourable for the person, if possible.
New rates will be effective from the €-Day and should be applied regarding tax liabilities arising on the €-Day or later.
Not all amounts will be subject to conversion as some amounts, e.g., the limit of the registration of a VAT payer is already prescribed in the tax legislation according to the Accession Treaty with the European Union.
The accuracy level for the calculation of tax amounts and established limits will be changed. For instance, the new minimum collectable tax amount will be 10 euros instead of the present 50 kroons under the Taxation Act and 5 euros instead of the present 50 kroons under the Land Tax Act.
Rates of state fees fixed in kroons in the State Fees Act shall be converted to euros, generally to the accuracy of one euro cent and generally in the direction more favourable for the person. Exceptions will be made for the visa fee payable on the border and the fee for application for the ID card through foreign representations.
Responding to information inquiries
Any tax-related information, disclosed by the Tax and Customs Board and reflecting the previous period, will be formulated in two currencies: the final amount will be calculated in euros but also indicated in kroons.
Revenue stamps, indicated on products in kroons prior to the introduction of the euro, may remain in circulation until they are used up. The amount indicated in kroons on the revenue stamp will be converted into euros according to the general conversion rules.
Submitting data to the tax authority
Immediate changeover will be applied to taxation on the €-Day. Expression of data concerning the preceding period is based on the currency of that period and the Tax and Customs Board will convert the amounts to euros, i.e., the companies will provide the kroon period reports in kroons and the Tax and Customs Board will convert kroons into euros.
Any information, indicating a monetary value, which is submitted to the Tax and Customs Board, shall be expressed in the currency in circulation in the respective period, i.e., information submitted during the period preceding the €-Day shall be indicated in kroons.
All reports and settlements with the Tax and Customs Board, i.e., submission (including the calculation procedure) and amendment (including conversions) of declarations (turnover declarations, customs declarations, etc.), shall be executed in the currency that was valid during the taxation period. The calculation procedure will be executed in kroons and the amount to be reimbursed or paid will be converted into euros pursuant to the general conversion rules.
Financial liabilities imposed for the previous period
Financial liabilities imposed or to be imposed for any previous periods (fines, tax notices, notices of tax assessment, reports, declarations, amounts of income tax to be refunded or to be paid additionally) shall be calculated in kroons and converted into euros according to the general conversion rules at the imposition / payment of the amount.
Advance tax amounts payable on the business income of self-employed persons are also initially calculated in kroons and thereafter converted into euros.
Schedules of payment of tax arrears in instalments
Previously devised schedules of payment in instalments will be converted into euros automatically, at the conversion rate valid at the time of the changeover and pursuant to the general conversion rules. The readiness of the Tax and Customs Board to issue instalment schedules in euros from the €-Day is of significant importance. The Tax and Customs Board will not issue any instalment schedules ten days prior to the €-Day.