Taxation and sending tax cards to the unemployment fund

Benefits paid by the unemployment fund are taxable, except for tax-exempt expense allowances. The withholding tax is either based on the withholding percentage received directly from the Tax Administration or alternatively on the withholding percentage indicated on the revised tax card.

The unemployment fund receives the tax information that comes into effect at the beginning of January directly from the Tax Administration

Unemployment Fund Pro receives the tax information that enters into force on January 1st directly from the Tax Administration, provided you were a member of Unemployment Fund Pro at the beginning of December of the previous year. Therefore, these tax cards do not need to be sent to the unemployment fund. However, you may still need a new tax card for the earnings-related allowance, as the withholding tax on tax cards issued for salary is at least 25%*. Note, however, that the tax percentage does not always decrease even if the income decreases compared to previous salary income. This is because the same deductions cannot be made from the earnings-related allowance in taxation as from salary income. When you apply for a revised tax card for the earnings-related allowance, the withholding tax is based on the withholding percentage indicated on the tax card, even if it is less than 25%.

*According to a decision issued by the Tax Administration on 28 November 2024, withholding tax is at least 25 percent if the member receives unemployment allowance and the withholding tax rate has been determined based on wages.

Please send your revised tax card to the unemployment fund if you have applied for a change to your withholding tax. 

You can conveniently order a revised tax card from the MyTax online service. You can use the online service to either print out your tax card or have it sent directly to the Unemployment fund Pro. If you order a revised tax card  to be electronically sent directly to Unemployment Fund Pro, indicate that you are applying for earnings-related allowance and select Unemployment Fund Pro as the benefit payer. This way the unemployment fund receives the tax card within 1–2 business days.

You will need online banking credentials, a mobile certificate or a microchip ID card to log in to the Tax Administration’s online service.

Checking Your Tax Information

You can check your tax information in the e-service under the section Income and Tax Information in the Tax Information section.

Why has the Tax Administration indicated a different tax percentage in the direct transfer than what is on my tax card?

The withholding tax on the earnings-related allowance is always at least 25 %, unless you have sent a revised tax card for the benefit to the unemployment fund. If there is no revised tax card for the benefit, the unemployment fund must use the tax card issued for salary. In this case, the withholding tax is at least 25 %, even if the basic percentage on the salary tax card is lower. The minimum 25 % withholding tax is based on the Tax Administration’s decision on the methods and amount of withholding tax. The tax percentage for the benefit (e.g., earnings-related allowance) is often higher than the tax percentage for salary income because the same deductions cannot be made from the benefit in taxation as from salary income.

If you receive earnings-related allowance, we recommend applying for a revised tax card for the benefit in OmaVero. When applying for a revised tax card, you should check all income and deductions for the entire year.

It is advisable to check your taxation in the autumn

If you receive earnings-related daily allowance, we recommend that you make sure in the autumn that your income limit is sufficient for the remainder of the year. If you notice that the limit is not sufficient you should order a revised tax card for the rest of the year. When assessing your income, note that the payment date determines the year of taxation. For example, if the payment date of the earnings-related daily allowance for December 2024 is in January the allowance will be taxed in 2025. 

Transition security allowance

Tax is withheld according to the additional tax rate specified in your wage income tax card, so you should consider requesting a revised tax card for the allowance. If you submit or ask the tax authorities to submit a revised tax card to the unemployment fund for the allowance, tax is withheld according to the basic rate specified in the revised tax card.