Taxes in Finland
A comprehensive guide to the Finnish taxation system for international businesses and entrepreneurs.
Corporate Income Tax
The corporate income tax rate in Finland is 20%. It applies to the profits of limited liability companies (Oy) and cooperative societies. The system is straightforward, with a competitive rate compared to other Nordic countries.
Value Added Tax (VAT)
The standard VAT rate is 25.5%. A consolidated reduced rate of 13.5% applies to food, restaurants, books, medicines, and transport. Newspapers and magazines remain at 10%. VAT registration is mandatory if turnover exceeds €20,000 per year.
Employer Contributions
Employers must pay social security contributions, pension insurance (TyEL), and unemployment insurance. The total indirect labor cost is typically around 20-25% on top of the gross salary.
Starting Business Income Example
A rough estimate of take-home pay for a Sole Trader (Toiminimi) billing €5,000/month.
This is a simplified example for illustrative purposes. Actual tax liability depends on your business structure and eligible deductions. Always consult a professional.
Useful Resources
Useful links to official Finnish authorities and financial systems.
Common Tax Situations We Solve
We help navigate complex tax issues for businesses.
Foreign Companies (CFC)
Guidance on Controlled Foreign Corporation rules.
Dividend Optimization
Strategies for optimizing taxes on dividends from non-listed limited companies.
Tax Return Corrections
Fixing errors in tax filings from previous years.
Late Filing Penalties
Helping you file on time to avoid punitive late fees and tax increases.