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 2023 the Finnish corporate/corporation/company flat tax rate is 20%.
Source: Finnish Tax Administration
Taxation of Various Forms of Business, 2023
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 you have an association/foundation and its status is a non-profit organisation (yleishyödyllinen; allmännyttig) under the fiscal authority's decision to that effect, any receipts of business income or income derived from real property will be taxable. If it is not deemed as a nonprofit, 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 2023 is 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 obtained January 2023. 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.
Filing and paying self-assessed taxes
Tax filing and payment of all self-assessed taxes, such as VAT and employer's contributions, must be submitted online at MyTax
Tax liability of foreign corporate entities
Corporate entities whose place of effective management is in Finland are considered resident taxpayers in Finland. More info
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
- Payments
- Refunds
- Self-assessed taxes
- Tax prepayment
Tax Information
- Being an employer
- Excise taxes
- Income taxation
- Prepayment register
- VAT
- International operations
- Foreign business in Finland
Related Links
Links to other sites are direct to the relevant page, where possible
