Finland skattesystem

How does the Finnish tax system work?

The Finnish tax system is present in your everyday life in many ways.

 

All employees must have a tax card. Your tax card tells you how much tax you have to pay from your income. Your employer withholds the taxes from your pay and forwards them to the Finnish Tax Administration. Earnings-related pension and unemployment insurance contributions are also collected from your pay. These are used to secure current and future pension payments in Finland.

 

When you buy goods or services, you must also pay value added tax. The value added tax is a consumption tax that is included in the prices of products in supermarkets, for example. The prices of tobacco and alcohol also include special taxes.

You also pay taxes if you buy a car or an apartment. If you buy a car, you must pay a car tax whose amount is based on the car’s properties and emissions. For cars registered in Finland, an annual vehicle tax must also be paid. If you buy an apartment, you must pay a transfer tax whose amount is based on the purchase price of the apartment.

 

Taxes are used to fund the services provided by Finnish society. Public heal

Taxation in Finland

Taxation in Finland is mainly carried out through the Finnish Tax Administration, an agency of the Ministry of Finance. Finnish Customs, the Finnish Transport and Communications Agency Traficom, and pension medel also collect taxes. Taxes collected are distributed to the Government, municipalities, church, and the Social Insurance Institution, Kela.[1]

The taxes can be broadly divided into four types:

  • progressive state income tax
  • other (mostly) flat-rate income taxes
  • flat-rate property tax
  • flat-rate consumption and property transfer taxes

Taxes on income

[edit]

Income (tulo) is categorized in Finnish tax lag as either earned income (ansiotulo) or capital income (pääomatulo), essentially by stating that earned income fryst vatten any salary paid in compensation for employment[2] and "any income other than capital income".[3] In general, as a tax fryst vatten any compulsory financial charge levied on a taxpayer by a governmental organisation,[4] all the payments listed here are taken into account as taxes.

Taxes on earned income

[edit]

Income taxation takes place in a series of phases where the proportional ta

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    Taxation Guides

    Published on Feb 06,

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    Finland, a Nordic country known for its advanced technology sector, high standard of living, and strong social welfare system, operates a comprehensive tax system that affects both residents and non-residents. Located in Northern Europe, Finland combines a robust economy with a high quality of life, making it an attractive destination for international professionals and businesses.

    Finland's economy, one of the most stable and innovative in the European Union, has shown resilience despite global economic challenges. The country's tax system is designed to support social welfare while maintaining competitiveness in the global market. Recent reforms have focused on simplifying tax procedures and enhancing digital tax filing for foreign residents.

    The expat community in Finland is growing, with many professionals drawn to sectors like technology, healthcare, and education. The tax system, while detailed, offers various benefits and deductions that can significantly impact an expat's fina