|
|
|
COUNTRY TRADING PROFILES
|
Print the page 
Taxes - Accounting
Tax Rates |
Accounting Rules
Tax Rates
Consumption taxes
- Nature of the tax
-
Value Added Tax (VAT)
- Tax rate
- 23%
- Reduced tax rate
- A 13% rate applies to basic foodstuff and animal feed. The excise duty on alcoholic beverages is 12%.
A 9% rate applies to passenger transport, books, medicines, accommodation services and entry fees to cultural events.
- Other consumption taxes
- Exceptions include the sale or rental of immovable property, financial and insurance services, healthcare and education.
Corporate taxes
Tax rate
| Corporate income tax |
24.5% |
- Tax rate for foreign companies
- Finnish companies are taxed on their worldwide income; non-resident companies are taxed only on income sourced in Finland.
- Capital gains taxation
- In 2010, the tax rate on capital gains is 28%.
- Main allowable deductions and tax credit
- Deductions normally include expenses that are incurred to generate or retain the company’s income such as payments of interest and royalties, realized foreign-exchange losses, 50% of entertainment costs, irrevocable orders to buy goods, doubtful sales receivables, fees for establishing an organization and reorganization costs, R&D expenses, etc.
- Other corporate taxes
- None
Individual taxes
Tax rate
| State income tax |
Progressive rates from 6.5% to 29.75% (for income exceeding EUR 70,300). |
| Municipal tax |
from 16.25% to 21.75% |
| Church tax |
from 1% to 2% (depending on regions) |
- Allowable deductions and tax credit
- The following deductions are allowable:
- expenses incurred in excess of EUR500 for traveling to and from work;
- statutory pension insurance and unemployment insurance premiums;
- interest on a loan if the loan was used to buy a permanent home or property that is used to acquire income;
- capital losses;
- medical expenses and alimony are not deductible, but there is a deductible maintenance allowance of EUR80 per child from earned income for each child living with a former spouse.
- Special expatriate tax regime
- at a flat rate of 35% if that person’s regular monthly cash salary exceeds EUR5,800 (except for teachers and researchers) for 48 months. The application has to be filed within 90 days from the start of the work in Finland.
Double taxation treaties
- Countries with whom a double taxation treaty have been signed
- See the list of Finland's tax treaties
- Withholding taxes
- Dividends: 28%, Interest: 0%, Royalties: 28%
- Bilateral agreement
-
 We can indicate you which local taxes are applied to your product.
Accounting Rules
- Tax year
- From January 1st to December 31st
- Accounting standards
- The Finnish Generally Accepted Accounting Principles (GAAP) is a commonly used accounting standard in Finland. Companies that are quoted in the stock-exchange have to use the IAS/IFRS standards (EU obligation since 2005).
- Accounting regulation bodies
-
The European Federation of Accountants
Chamber of Commerce
- Accounting reports
- The accounting report is made annually. In the report intangible assets can be shown in the balance sheet or in expenses in the profit and loss account (choice of the company). Physical fixed assets must be estimated at the original or production cost. Current assets have to appear at the lower cost and value of the market. Stocks are estimated at the weighed average cost or by the FIFO method.
- Publication requirements
- Law refers to the notion of "good accounting method" as regards the methods of companies for the elaboration of financial status. All companies have to send a copy of their annual report to the legal authorities of the country. This annual report must contain a profit and loss account, a balance sheet and an annual report.
- Professional accountancy bodies
-
KHT-yhdistys ry
HTM-tilintarkastajat ry
Association of Finnish Accounting Firms
- Certification and auditing
- Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact the Central Chamber of Commerce and Local Chambers of Commerce.
- Accounting news
-
Accounting news (in Finnish only)
© Export Entreprises SA, all rights reserved.
Last updates: May 2012
|
|
|
MAP
ECONOMIC INDICATORS
Compare the potential of your markets :
|
