Corporate taxation in Finland

Corporate income tax

Income tax rate for limited liability companies and other corporate entities is 20%. Business income is divided into earned income and capital income.

Value-added tax

VAT is paid on the sales of goods and services. The standard VAT rate is 24%. Companies that are registered for VAT must regularly file VAT returns.

Earned income

Resident taxpayers are individuals whose home is in Finland or who stay in Finland for longer than 6 months. Earned income (e.g. wages and salaries) is subject to progressive state income tax, municipal income tax and the health insurance contribution.

Transfer tax

Transfer tax on most shares is 1.6%, except 4% on real estate and buildings and 2% on shares in a housing company or a real estate company.