Taxes in Finland 2014-2016

Below you can find an overview of the main business-related taxes in use in Finland during 2014-2016. At the bottom of the page there are links to other pages on our website covering other types of taxes eg. employment-related taxes and contributions.

	2016	2015	2014
Corporate Income Tax (Yhteisövero)	20%	20%	20%
VAT (ALV)	24%/ 14%/ 10%	24%/ 14%/ 10%	24%/ 14%/ 10%
Capital Income Tax (pääomatulo) on dividend from a listed company	25,5% from the total amount (including tax free part) for amounts up to 30 000€	25,5% from the total amount (including tax free part) for amounts up to 30 000€	25,5% from the total amount (including tax free part) for amounts up to 40 000€

	28,05% from the total amount (including tax free part) for amounts in addition to 30 000€	28,05% from the total amount (including tax free part) for amounts in addition to 30 000€	27,2% from the total amount (including tax free part) for amounts in addition to 40 000€
Taxable portion of dividends from a listed company	85% of dividend received by a private person or an estate	85% of dividend received by a private person or an estate	85% of dividend received by a private person or an estate
Capital Income Tax (pääomatulo)	30% for amounts up to 30 000€	30% for amounts up to 30 000€	30% for amounts up to 40 000€

	34% for amounts from 30 000€	33% for amounts from 30 000€	32% for amounts from 40 000€
Taxation of dividends from a non-listed company	25% of distributed dividends of up to 8% of company’s net assets (max 150 000€) is taxable as capital income. Of the amounts exceeding 150 000€, 85% are taxable as capital income.	25% of distributed dividends of up to 8% of company’s net assets (max 150 000€) is taxable as capital income. Of the amounts exceeding 150 000€, 85% are taxable as capital income.	25% of distributed dividends of up to 8% of company’s net assets (max 150 000€) is taxable as capital income. Of the amounts exceeding 150 000€, 85% are taxable as capital income.

	Of the distributed dividends above 8% of net assets, 75% are taxable as earned income.	Of the distributed dividends above 8% of net assets, 75% are taxable as earned income.	Of the distributed dividends above 8% of net assets, 75% are taxable as earned income.
Real-Estate Tax (kiinteistövero)	General rate 0,86-1,8% Permanent homes 0,39-0,9%	General rate 0,8-1,55% Permanent homes 0,37-0,8%	General rate 0,6-1,35% Permanent homes 0,32-0,75%

	Undeveloped construction site 1,0-4,0%	Undeveloped construction site 1,0-3,0%	Undeveloped construction site 1,0-3,0%

	Power plants 0,6-3,1%	Power plants 0,6-2,85%	Power plants 0,6-2,85%
Asset Transfer Tax (varainsiirtovero)	Securities 1,6%	Securities 1,6%	Securities 1,6%

	Shares of real-estate or housing companies 2,0%	Shares of real-estate or housing companies 2,0%	Shares of real-estate or housing companies 2,0%

	Real-estate 4,0%	Real-estate 4,0%	Real-estate 4,0%

Sources:

Finnish Tax Administration’s website
Finnish Taxpayers’ Union website
Applicable laws on the Finlex website

Capital income: gains from selling an asset, any other income that can be attributed to the fact that the taxpayer has owned assets, dividend income, rental income, capital gains, interest income, proceeds from a life insurance contract, the share of profits of an investment fund, the capital-income portion of forestry income, and the capital-income portion of business income and the income of a partner in a consortium. (Finnish Tax Administration)

Real-Estate Tax

In the following municipalities the real-estate tax for undeveloped construction sites is at least the municipal tax rate + 1,5% up to a maximum of 4,0% (2016): Espoo, Helsinki, Hyvinkää, Järvenpää, Kauniainen, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Sipoo, Tuusula, Vantaa and Vihti.

Municipalities have the right to assign an own tax rate for different types of real-estate except permanent homes (for example holiday houses). Such an own tax rate can be up to 1% (2016) higher than the rate for permanent homes. If no specific rate has been set, the tax rate for holiday houses is the general real-estate tax rate.

Real-estate tax bill is issued to a person owning the real-estate in the beginning of the year.

Asset Transfer Tax

The buyer is responsible for paying the asset transfer tax. Securities traded through a stock market are not taxable for asset transfer tax. Under certain conditions, the buyers of their first home are not obligated to pay the tax.

PS! This page does not provide a full coverage of the taxation in Finland. There are exceptions, terms and additional taxes and requirements not covered in the brief overview above.

Other taxes and tax related topics covered on our website:

Personal income tax in Finland is progressive and as it depends on many more items than just gross income, we do not cover it oun our website. However, the Finnish Tax Administration’s website has a personal income tax calculator for the current and last years for estimating the personal income tax.

For more information about the effects on your company or personal taxation, please contact our specialists today via the contact form, e-mail info@kuljus.eu or phone +358 503 220 600.