Public Broadcasting Tax and Åland Islands media fee

Individual taxpayers are liable to pay public broadcasting tax on their net earned and capital income, i.e. their taxable income after the expenses for the production of income have been deducted.

Corporate entities, such as limited liability companies, must also pay public broadcasting tax based on their taxable income.

Taxpayers in the Åland Islands pay a corresponding media fee instead of the public broadcasting tax. 

Individual taxpayers

Public broadcasting tax

Individual taxpayers who are over 18 years old and live in mainland Finland are subject to public broadcasting tax. This tax is a personal tax that affects the withholding rate on your tax card or the size of your prepayments. Non-resident taxpayers or estates of deceased persons are not subject to public broadcasting tax.  

Depending on your income, you pay €0–€160 of public broadcasting tax per year. The tax is 2.5% of the part of your net earned income and net capital income or work income under YEL and MYEL insurance that goes over €15,150. The maximum amount of tax is €160. If you receive less income than €15,150 per year, you do not have to pay public broadcasting tax at all.

Åland Islands media fee

Individual taxpayers over 18 years old whose municipality of domicile is in the Åland Islands are liable to pay an annual media fee. The media fee is €127 year 2025 if the total amount of your net earned income and net capital income or your work income under YEL and MYEL insurance is more than €14,000. The fee affects the withholding rate on your tax card or the size of your prepayments. The media fee is personal. Non-resident taxpayers or estates of deceased persons do not have to pay the media fee.

Corporate taxpayers

Public broadcasting tax

Corporate entities that operate business or agriculture are liable to pay public broadcasting tax. These include limited liability companies, cooperatives, associations and foundations. In addition, it may be that a nonprofit organisation promoting the public good is liable for paying this tax, if the organisation receives taxable income from a business or agricultural activity. Public broadcasting tax is included in the corporate entity’s prepayments.

Entities not liable for paying this tax include housing companies and any entities domiciled on Åland. In addition, the State of Finland and its institutions, Finnish municipalities, parishes, religious communities and benefits under joint administration are exempt from public broadcasting tax.

The size of the tax

If the corporate entity receives less than €50,000 of taxable income, it does not have to pay the tax at all.

If taxable income for the tax year is at least €50,000, the amount of public broadcasting tax is €140 plus 0.35% of any taxable income that exceeds the threshold of €50,000. 

However, the maximum amount of tax is €3,000 per year. This amount would be paid by a corporate entity that received €867,142 or more of taxable income for the tax year.

Corporate entities can treat their payment of the tax as a cost, deductible against the entity’s income from a business source. Farms and other entities receiving income from an agricultural activity can treat their payment of the tax as a cost deductible against their income from agriculture.    

Personal sources of income and public broadcasting tax

Only the corporate entities that operate business or agriculture are liable to pay public broadcasting tax. Corporate entities that only have income from personal sources are not subject to the tax. For example, if the corporation has rented a real estate unit to a third party but the rental operation is not (directly or indirectly) connected to the corporation’s business operation, this rental income is treated as income from a personal source of income.

If the corporation operates business or agriculture, the amount of taxable income used as basis for public broadcasting tax includes all of the corporation’s other income in addition to its income from business or agriculture.

However, some corporate entities, such as non-profit organisations, can have a personal source of income. If the non-profit organisation only has income from personal sources, it does not need to pay public broadcasting tax. Examples of a non-profit organisation’s income from personal sources include membership fees, dividend income, interest income, rental income from apartments, and donations or subsidies.

Åland Islands media fee

Corporate entities that operate business or agriculture and that are domiciled in the Åland Islands are liable to pay the Åland Islands media fee. These include limited liability companies, cooperatives, organisations and foundations.

The amount of the media fee is determined by the corporate entity’s taxable income. If the corporate entity’s taxable income for the tax year is at least €50,000, the media fee is €140 and 0.35% of the part exceeding €50,000. The maximum amount of the fee is €3,000.
The maximum amount is paid by corporate entities that receive €867,142 or more in taxable income that tax year. If the corporate entity receives less than €50,000 taxable income, it does not have to pay the media fee at all.

Corporate entities that only have income from personal sources or income subject to the tonnage tax do not have to pay the media fee. In addition, a corporation may be exempt from the media fee according to the provincial law of the Åland Islands. The media fee does not have to be paid by municipalities, parishes, religious communities, housing companies, foreign estates of deceased persons or corporate entities exempt from income tax.