Business Taxation in Finland
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This is a brief guide only, and does not constitute legal advice. Always check the latest rules & regulations with the relevant authorities.
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
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 - businesses and corporations
Above information current at August 12, 2017. Check www.vero.fi for updates. Precise information for each form of corporate entity is only available in Finnish.
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.
From January 2017: New rules for filing and paying of self-assessed taxes.
- Tax Account Online is no longer in use, and periodic tax returns are no longer filed
- Tax returns on self-assessed taxes such as VAT and employer's contributions must be submitted online, for example in MyTax
The Tax Administration Businesses and Corporations section includes information about:
Business Life Cycle
- New business enterprise
- Changes in business
- Going out of business
- Employee or self-employed?
Declaring & Paying
- Annual Information Returns
- Construction work reports
- Financial Difficulties
- Income Tax Returns
- Refunding taxes
- Self-assessed taxes (formerly Tax Account and Periodic tax returns)
- Tax prepayment
- Being an employer
- Excise taxes
- Income taxation
- Prepayment register
- International operations
- Foreign business in Finland
- Accountancy & Notifications: Accounting, submission of annual & periodic notifications, accounting periods, financial statements, auditing
- Accounting & Auditing Firms: Firms offering multilingual accounting & auditing services in Finland
- Lawyers & Legal Representation in Finland: Legal advice on business and tax matters; finding a lawyer