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Important to know about Finland

Companies

Company registration time is 2-19 weeks and it costs 350 euros.

Registers

Foreign business entrepreneur VAT registration: As a rule of thumb, VAT must be paid for any sales of goods and services that take place in Finland, even if a foreign business entrepreneur is the seller and no fixed establishment is used.

Prepayment register

All entrepreneurs engaging in business, farming, forestry or any other income-generating activity, under all legal forms, are entered in the prepayment register on the basis of the facts submitted in the Start-up notification. The customer does not have to withhold any taxes when purchasing goods or services from a prepayment-registered entrepreneur.

Income tax prepayments

Collection of the estimated income tax from a taxpayer during the tax year before determination of the final tax due: this can take the form of withholding an amount of money from wages - according to the personal tax rate marked on the tax card - or alternatively, by preliminary payments made by the taxpayer himself. Income tax is paid to the municipality and to the state.

For more information see Tax Guide > Working and studying in Finland

Prepayment registration certificate

By virtue of registration for prepayment tax, a business entrepreneur can receive all types of payments such as fees, commissions and awards without obligation to withhold any tax on the part of those who buy goods or services from him. You can check up the registration status of any business entrepreneur by looking up in the Search section of the Business Information Service website www.ytj.fi or calling +358 20 697 030.

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Audit obligation
Balance less than 100.000€, Income less than 200.000€ and no more than 3 employees.

Taxes	Rates	Short explanations
VAT	The standard rate is 23%.	13% to foodstuffs, animal feed, restaurants, catering and 9% to books, medicines, admissions to commercial sporting facilities, sporting events, cultural and entertainment events.
VAT-exempt business		Entrepreneurs with net sales under €8,500 a year, corporate bodies promoting for the public good, financial and insurance services are not VAT liable. Copyright fees are VAT-exempt.
Corporate income tax	The tax rate is currently 26%.	The income tax of corporations is a flat tax.
Dividend tax	Like personal income taxation if it is more than 90.0000€	Investment income: yield on property or assets, interest income, dividends, received from companies listed on the stock exchange, rental income, a profit share, yield on a life insurance policy, the capital income share of income from forestry, and income derived from processing land and soil.
Personal income tax	Progressive tax, 0-60%	Wages, salaries, pensions, compensations, forestry income, business income, the rates of tax are the higher as the income increases.
Municipal income tax		Tax to be paid to a municipality on the basis of earned income. Towns, cities and rural communes have varying rates.
Social security contributions	Year 2010 2,23%	Employer´s contribution as a percentage of gross taxable wages.
Property tax	The flat tax rate is 28%	Profits from selling or exchanging real property, buildings, securities such as housing-company shares, shares in listed companies etc
Real estate transfer tax	0,5-1%	Tax levied annually on the basis of the value of real property, payable to the municipality where the property is located.
Car tax		Car tax, automobile tax and vehicle tax are explained on the Website of the Vehicle Administration select "Taxation" - and the website of the Customs
Church tax		Tax to be paid on the basis of the taxpayer´s income to a parish of the Finnish Evangelical Lutheran Church or Finnish Orthodox Church. An official decision determines the church tax rate every year.
Inheritance tax	Applicable rates vary according to estate value and category of family relationship.	Below €20,000 no inheritance tax is due. If the estate is worth more, the excess will be taxable.
Marginal tax	In some municipalities rates exceed 56 %.	In progressive taxation, the tax to be paid on an increase in the income of a taxpayer is called the marginal tax. Assume you earn €1,000 as an additional to your regular income, and you must pay €530 tax, your marginal tax rate is 53.
Stamp tax		The old name ´stamp tax´ used to mean the tax levied for transfer of title of real property, buildings or securities. See Asset transfer tax.
Tax on diesel fuel		Look at www.ake.fi
Åland Islands		Municipal income taxes in the Åland Islands are levied according to local tax rules, but the same tax laws as in other parts of Finland are in force in respect of state taxes. A number of VAT rules are different from those of the Finnish mainland.

Taxes for non-residents
A person residing in Finland and a corporate body registered in Finland must file tax returns and state their income originating in other countries as well as any assets, such as real property and buildings, located in other countries. Income originating in other countries is taxable even if it the recipient does not transfer the income to Finland. If you come to Finland for a shorter period than 6 months, your gross income is taxed at 35 %. Whoever pays you must withhold the flat rate of 35 per cent of your pay and remit this amount to the Tax Administration. This is called "final withholding tax", also known as "tax at source". Whoever pays you interest must withhold 28 % and remit this amount to the Tax Administration

Important links

Tax Administration

Trade Register

In English