What are the taxes in Finland?

Finland currently has a fairly high standard of living for citizens, despite the fact that the tax system in the country is quite strict.

general characteristics

Two characteristic features of the tax system in Finland can be distinguished:

• high level of tax rates ;
• the practical absence of a system of benefits;
• the main part of budget replenishment does not come from company taxes, but from taxes from citizens;
• strict system of control over the payment of taxes and penalties in case of non-payment.

Among the main sources of income of Finnish taxation are:

• income and income taxes ;
• taxes on goods and services.

Taxes levied on individuals are divided into two types:

• labor (pension, salary and various payments);
• capital (from the sale of property, rental).

What tax in Finland can be judged by studying the features of the tax system:

• if a person came to Finland, works for a Finnish company, he always pays taxes, but if he works for a company that is not located in the country, he does not pay taxes;
• the transfer of profits from a branch in Finland to a parent foreign organization is not taxable;
• excise taxes imposed on a large number of goods (alcoholic beverages, juices, soft drinks);
• there are special fees, for example, a fee for the salvation of sailors;
• there is a tax on dogs;
• the forest and farmland are not real estate, therefore it is not taxed;
• title deed tax;
• payment of all taxes in advance gives the right to receive certain benefits;
• overpayment of taxes must be returned in December;
• the punishment for tax violations is not only material, but also criminal;
• there are no taxes on "superprofits", there are no minimum taxes.

Schematically, a list of the main taxes in Finland can be presented in the table below.

Income tax

Income tax in Finland is 36% of the income of individuals. The following parameters affect the size of this bet:

• area of ​​a house or apartment;
• marital status;
• children.

It should be noted that this fee also includes payments for compulsory health insurance and church tax.

A feature of income tax in this country is the practical absence of a system of tax benefits, or it is very minimal. All citizens are required to pay income tax, except for the category of poor.

If a foreigner has been in Finland for more than 6 months, then he also pays income tax in the same amount as local citizens. For this purpose, a foreign citizen must contact a special magistrate at the place of his temporary residence, receive his personal code and issue the appropriate taxpayer card. In this case, the tax rate for foreigners is fixed at 35% (including for pensions, fees).

In relation to non-residents, taxation is used in respect of income received in Finland. Moreover, the tax rate is 28%. For example, if a person lives in Finland, but performs work for a company in Russia, then such income is not taxed.

Payroll tax

The amount of payroll tax depends on its size. There is a clear grading system for rates presented in the table below.

31% is the maximum rate for this tax.

Property tax

A feature of real estate tax in Finland is the fact that within 6 months before the registration of the transaction, the buyer of the property must pay a tax of 2% when buying an apartment and 4% when buying a house. If after this period the tax has not been paid by the buyer, then the rate may increase several times.

Another feature is the tax exemption if the buyer is 18 to 40 years old, as well as if this is his first purchase of real estate.

Then annually a tax of between 0.5% and 1% of the value of the property is paid. It is worth noting that the profit from the rental of real estate is taxed in the amount of 30-32%.

VAT

This type of tax must be paid monthly. Its base rate is high and is 24%.

Three types of bets are possible:

• 24% - the basic rate;
• 14% - the rate on food products and catering services;
• 10% - for transport, medicines, media, etc.

Tax refund

Consider how tax refund is carried out in Finland. Many Finnish stores support the Tax Free system, in which you can return 10% of the purchase price. The meaning of such a system is that in one place a product is purchased for an amount of at least 40 euros (moreover, food and consumer goods are considered separately). Further, it is forbidden to unpack these goods until the tax is refunded (but not more than 90 days after purchase).

Books and tobacco products make up a special category. No tax refund is made from them.

Transport tax

The transport tax is paid once for new cars that have been manufactured or imported into Finland, as well as for used vehicles brought from abroad.

The tax is paid at the time of registration of the car.

Corporate income tax

Legal entities are required to pay taxes on the company's profit. The tax system is characterized by "tax neutrality", this is expressed in the fact that taxation does not depend on the form of ownership.

Individual entrepreneurs who receive income also pay taxes. Expenses should be deducted from their income. The tax is paid on the profits received, and the remainder goes as the entrepreneur’s earnings.

Taxation of limited partnerships is similar. First, profit is considered, then it is divided between the owners of the business, and then a tax is taken from each, as from sole earnings.

Joint-stock companies pay tax at a rate of 20%. The company may make dividend payments to shareholders, which are then taxed.

And what about the terms of payment?

Taxes in Finland must be paid in advance, which means in advance. So, you need to roughly estimate the amount of income that the taxpayer will receive for the year, and make the necessary tax amount until December 31 of the current year. In this case, the planning of the amount of income is carried out independently by the payer. In case of overpayment - money will be returned, and in case of shortage - it will be necessary to pay extra. For those who make money in advance, there are small exemptions.

The consequences of tax evasion

Tax evasion once for a good reason is considered quite loyal. However, in the event of repeated warning, an increase in rates and interest will occur. The amount of increase depends on the amount and severity of violations. With the most serious violations, they can imprison from 4 months to 4 years all persons responsible for taxation at the enterprise. Further, this organization will be blacklisted, which will subsequently become apparent due to the fact that banks and other intermediary companies will cease to work with ytq.

conclusions

Taxes in Finland currently remain quite high, but the system itself is very well established and works flawlessly in matters of replenishing the treasury in the country. This fact is evidenced by the fact that Finland is in fifth place in the UN list by the index of happiness.