Tax-free aid regress now reported as Muu etuus

When a person has first received tax-exempt social assistance for a period and is later granted a taxable benefit for the same period, the later benefit is the recipient's taxable income even though part of it is paid directly to the earlier payer.Vero Ennakonpidätys is withheld from the later payment despite that redirection.Vero

Tuloverolain 112 a §Vero:n 3 momentti does not apply in this order of payments.Vero That provision makes a regress payment tax-exempt only when the earlier benefit, which is recovered through regress, was itself taxable.Vero A tax-exempt payment that is later offset against a taxable benefit therefore stays outside that reliefVero: the recipient is taxed on the later benefitVero and the earlier assistance is not recharacterised.

The earlier tax-exempt payment can be, for example, toimeentulotuki granted by Kela against a forthcoming earnings-related daily allowance, or asumistuki, including eläkkeensaajan asumistuki under laki eläkkeensaajan asumistuesta 571/2007. Toimeentulotuki itself is not reported to the tulorekisteri.Vero

Even though the earlier toimeentulotuki was never reported, the payer of the later taxable benefit must report the regress share on its own etuustietoilmoitusVero. The share paid to the other benefit payer, corresponding to the toimeentulotuki, is reported to the tulorekisteri using income type Muu etuus.Vero The worked example covers a recipient who received 2,228 euro of toimeentulotuki for 1 January to 15 March 2023 against a forthcoming ansiosidonnainen päiväraha, after which the työttömyyskassa paid 4,800 euro of daily allowance for 5 December 2022 to 15 March 2023 and transferred 2,228 euro of it to the earlier payer. The fund's March 2023 filing splits the allowance across the 2022 and 2023 earning periods, records a 2,228 euro Muu etuus deduction of type Regressi verottomaan tuloon with the original benefit earning period and settlement period, and reports ennakonpidätys of 1,056 euro, being 22 per cent of the 4,800 euro.

The reissued guidance Etuudet: takaisinperintä ja regressi, VH/5668/05.00.00/2026, applies from 1 January 2027VeroVero until further notice. Its only substantive additions are the expanded example 23 in section 4.2 and the naming of the qualifying tax-exempt payments. The obsolete sentence that required a työttömyyskassa to file a separate vuosi-ilmoitus with Verohallinto on 2022 unemployment allowance days has been removed.

Legal basis: Tuloverolaki 1535/1992, 112 a §; Verohallinto guidance Etuudet: takaisinperintä ja regressi VH/5668/05.00.00/2026, sections 4.2 and 4.3.