Tax deductions available to self-employed individuals
Self-employed individuals with a business name can make various deductions that reduce their company’s taxable income.
Report the following deductible expenses in the business tax return yourself:
- car expenses
- commuting expenses (in Finnsh and Swedish)
- rent for workspace, and home office deduction (in Finnish and Swedish)
- entertainment expenses
- depreciations and minor acquisitions.
The following deductions are calculated automatically by the Tax Administration:
- losses (if you want to deduct losses from capital income during the tax year, you must request it separately) in Finnish and Swedish)
- deduction for entrepreneurs. (in Finnish and Swedish)
However, remember to check your tax decision to make sure the deductions are correct.
The following expenses are non-deductible
You cannot deduct the following expenses as business expenses:
- fines, penalty fees and other penalty-like charges
- wages you have paid to your spouse, or wages paid to your child who has turned at most 14 during the tax year (if your spouse works in the business, the business income can be divided between the spouses on the business tax return)
- value of your own work, and cash withdrawals from the company's cash register or bank account. A self-employed individual cannot be their own employer and therefore cannot pay wages to themselves. For the same reason, self-employed individuals cannot grant fringe benefits to themselves.