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Last checked: 11/09/2018

Company tax in the EU – Finland

The company tax rate for Finland is 20%. Income tax in Finland

When you set up your company, you should ensure that you do the following:

Submit your company's tax declaration by the deadline. The deadline depends on the form of the company.

What profits do you pay company tax on?

In the Finnish taxation system, the taxable income of legal persons is calculated according to the source of income. There are three sources of income: business activities, agriculture and other activities.

Business and professional activities are considered to be business activities (Business Tax Act, Section 1). Taxable business income is income received from business activities in the form of money or benefits having a monetary value.

Agriculture means conventional agriculture and special agriculture or other activities relating to agriculture or forestry which is not considered to be another type of business (Section 2(2) of the Farming Income Tax Act, MVL).

Sources of income from other activities also includes income that is not income from business activities or agriculture (Section 2(1) of the Income Tax Act, TVL). The same principle also applies to portfolio investments. Besides portfolio investments, accommodation rented to third parties or rental income from property may count as sources of income from other activities.

Source of income - portfolio investmentsfi(in Finnish)

Source of income - property and share investmentsfi (in Finnish)

Paying income tax to Finland

Activities carried out by a foreign company in Finland may constitute a fixed establishment in Finland for the purposes of income tax. If so, the foreign company will have to pay income tax to Finland on its business income. Tax must be paid to Finland on some income, even where there is no fixed establishment. Such income includes income from renting or selling property.

Foreign company with a fixed establishment in Finland

Taxation of foreign corporations in Finland

Changes to corporate income taxationsvfi

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