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Business Taxation in Finland

This is a brief guide only, and does not constitute legal advice. Always check the latest rules & regulations with the relevant authorities.

Introduction
Tax treatment of businesses in Finland varies depending on the form of company, and direct taxation in particular may affect the choice of company formation. In 2017 the Finnish corporate/corporation/company flat tax rate is 20%.
Source: Finnish Tax Administration: Search 'Income taxation - companies and organisations'

Taxation of Various Forms of Business, 2017

The form of corporate entity of your company or organisation will largely determine its income-tax obligations.

Some entity forms including the limited company and the cooperative society are independently liable to pay income tax as taxpayers. Their receipts of income is taxed as income attributable to the entity itself. The corporate income tax rate is 20%. If a limited liability company distributes dividend to its shareholders, the shareholder-beneficiaries will be taxed as provided by specific rules.

If the corporate entity is an association or a foundation promoting for the public good, any receipts of business income or income derived from real property will be taxable. If an association or foundation is not deemed as an entity promoting for the public good, it is liable to pay 20% tax on all income.

Profits are fully taxable as income of the owner-shareholder in the case of a self-employed professional individual, a self-employed business entrepreneur or a general or limited partnership. The taxable income attributable to the operation of the trade or business is divided between a capital-income portion and an earned-income portion. Capital income in 2016 was assessed at 30% for income under €30,000, and 34% for income over €30,000. Earned income is assessed using the progressive scale. The income of an agricultural enterprise is similarly divided into a capital-income portion and an earned-income portion.

Source: Finnish Tax Administration: Search 'Income taxation - companies and organisations'
Above information current at January 5, 2017. Check www.vero.fi for updates. Precise information for each form of corporate entity is only available in Finnish.

Finnish Tax Administration - Business Taxation

The taxation complexities of companies & organisations may best be left in the hands of professionals but, if you have a head for it, all the information and e-services you need are available at the Finnish Tax Administration site.

January 2017: New rules apply for filing and paying of self-assessed taxes.

The Tax Administration Companies and Organisations section includes:

Life Cycle of a Business

Declaring & Paying

Tax Information

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