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

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

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

Finland and Tunisia are bound by a double taxation treaty: no

Sources of fiscal information

Tax Authorities

National Board of Taxes

Other domestic resources

Employment Office guide on taxation of foreigners
Taxation Guide from the Ministry of Finance