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The Unemployment Fund for Entrepreneurs and the Self-Employed
If the company's balance sheet for the last full accounting period, minus liabilities, has exceeded EUR 20,000, it will be examined, whether any capital gain has been made in connection with closing down a business. Any remaining capital gains are deferred in line with the length of time they equal in terms of earned income. Deferral postpones the start of payment of daily allowance.
When claiming daily allowance, submit a report on capital gains to AYT. The form should usually be accompanied, at a minimum, by balance sheet data on the business from the last full accounting period. If the balance sheet total, less liabilities, exceeds EUR 20,000 and you have owned the business or a part thereof, you’ll find information on required attachments and advice for filling on the help sheet provided with the form. If you find it difficult to fill out the form, you can have it completed by your accountant, or contact our customer service so that we can advise you on how to fill it out.
Capital gain is calculated from the current value of the business assets. You can deduct either the share of the acquisition price undepreciated in the balance sheet or half of the value of the sold assets from the current value as an acquisition cost. In addition, costs accumulated from the disposal of assets and unpaid debts and interest thereon at the time of closing down a business can be deducted from a capital gain.
Pekka has had a limited company in which he had a 50% interest. The company was wound up on December 31st 2016.
The earned income used as the basis for determining Pekka's unemployment allowance is EUR 18,000 per year (= EUR 1,500 per month).
The limited company's balance sheet total for the last full accounting period, less liabilities was EUR 25,000.
At the time of winding up, the business had 2 cars, which the partners have taken into their personal use. According to the estimate of a car dealer, the current values of the cars at the time of winding up total EUR 30,000 (EUR 15,000 per car).
The share of the acquisition cost of the cars undepreciated in the balance sheet (purchase price less depreciations) is EUR 20,000 (which is more than half of the current value (EUR 15,000).
The company has no other fixed assets or inventories nor does it have any long-term investments.
At the time of winding up the business, there is a VAT debt totalling EUR 1,000 on the balance sheet.
The current value of the cars is EUR 30,000. Deducted from this is an acquisition cost of EUR 20,000 (the undepreciated share of the acquisition cost in the balance sheet), which is more than half of the current value (EUR 15,000). In addition, the company's debts of EUR 1,000 at the time of winding up are deducted. EUR 9,000 remain as deferrable capital gains. This is shared in accordance with ownership ratios (Pekka owns 50%) with the other shareholders, which means that Pekka receives deferrable capital gains totalling EUR 4,500.
The capital gain obtained is divided by the monthly income on which the daily allowance is based. EUR 4,500/EUR 1,500 = 3.
The capital gain is deferred over 3 months between January 1st 2017 and March 31st 2017. Payment of the unemployment allowance can begin after the deferral period and the personal liability period of 7 working days (Mon-Fri), which is set at the beginning of the maximum payment period, from April 1st 2017 until April 11th 2017. After the deferral period and the personal liability period Pekka is entitled to unemployment allowance from AYT for up to 400 days.