Defining actors in the financial sector

From the perspective of taxation, key actors in the financial sector include custodians, brokers, insurance companies and investment firms. Key clients on the other hand, include those supervised by the Financial Supervisory Authority, such as:

  • life insurance companies
  • non-life insurance companies
  • employee pension insurance companies
  • actors in the credit market
  • equivalent foreign insurance companies, and permanent establishments and branches of credit institutions in Finland

Actors in the financial sector can be defined differently depending on the area of taxation as well as the overall context.


Actors in the financial sector are defined in their own right when it comes to FATCA- and CRS/DAC2 regulation.

Value-added taxation

From the perspective of value-added taxation, actors in the financial sector include those in banking, insurance and finance that provide financial services as per § 42 of the Act on value-added tax, which are essentially not subject to VAT.

The above list is not exhaustive, and there are other financial actors that provide services such as described above. For example, the actors liable to insurance premium tax can include other actors besides insurance companies.

Withholding taxation

From the perspective of withholding taxation, actors in the financial sector include those actors that in the role of a custodian withhold tax and submit annual information returns on payments such as interest, dividends, and certain insurance claims. This information is utilised in taxation as well as international exchange of information.

Companies in the financial sector also have their own business activity that come with certain responsibilities; these include for example return payments made by banks, which are subject to tax-at-source on interest. The umbrella term of the financial sector is also related to financial products and services provided by a multitude of different actors, where special attention should be focused on how these are handled from the perspective of withholding taxation and annual information returns.