Tax Consulting Services
We offer a wide variety of tax consulting services in Finland and Estonia. Our specialists have years of practical experience working with different tax related cases. We mainly work with corporate and employer taxes. While some of our employees work daily with tax calculations, others prepare tax analyses, -budgets and -plans. Taxes are the basis for keeping up the state infrastructure, all businesses can use in their activities. Still, they also add up to a significant cost for the companies. Thus, optimizing the amount of taxes the companies pay is essential to the existence and efficient operations of every business.
Corporate Income Tax in Finland
Finnish corporate income tax rate was lowered to 20% in 2014. A company pays the income tax on annual taxable income. Payment of the tax is handled via a prepayment system, where a company pays income tax prepayments on the estimated taxable income already during the period for which the tax is calculated. After the end of the financial year, when the taxable income amount is finalized, an adjustment is made and either the company needs to pay additional income tax or the extra payment is returned.
In calculating the taxable income, which is the basis for calculating corporate income tax, a company needs to consider all applicable costs and deductions, not to pay too much taxes and thus harm it’s business cash flow. On the other hand, a company also needs to make sure not to include private costs or any other not applicable costs in their accounting as later changes in the taxable income and added income tax obligations can be very expensive and time-consuming to deal with.
Information on permanent establishment in Finland in terms of corporate income tax is available on a separate page.
Value Added Tax (VAT) in Finland
The general VAT rate in Finland is 24%, reduced rates are 14% and 10% since 01.01.2013.
14% rate is used for food, animal feed, restaurant-, meal- and catering services.
10% rate is used for accommodation, transport of passengers, TV licences, movies, entrance fees to cultural and entertainment events, books, medicine and services relating to sports and physical exercise.
Registration for VAT is obligatory for companies selling goods or services with a taxable value of 10,000€ and above during a 12-month financial year.
Some services are still outside the scope of VAT taxation, these include selling of real estate and apartments in housing companies, healthcare services and social services.
VAT liable companies also have an obligation to declare the amounts of VAT payable and receivable either yearly, quarterly or monthly, depending on the amount of annual sales.
In some sectors like construction and selling of scrap metal, a VAT reverse charging is used. This means that in those sectors in most of the cases the VAT is declared and paid by the buyer.
Information on permanent establishment in Finland in terms of VAT is available on a separate page.
If you are interested in taxation in Finland (and can read/speak Finnish) and are not yet a member of the Finnish Taxpayers’ Association, it might be a worthwhile minor investment to consider. Their magazine and courses are very informative.
When you have questions related to the taxation of your business activities, please contact our specialist via phone +358 503 220 600, e-mail: tax@kuljus.eu or contact form.
We mainly provide services in the Greater-Helsinki area (Helsinki, Espoo, Vantaa, Kauniainen, Tuusula, Järvenpää, Kerava, Hyvinkää), still we are more than happy to help clients in other areas of Finland as well.