As an entrepreneur, you may in certain cases receive financial subsidies for hiring a new employee or obtaining required competence. There are regional differences in granting subsidies.
Forms of subsidy include:
tax credits for domestic costs.
The Employment and Economic Development Office (TE Office) can grant pay subsidies to cover the costs of hiring an unemployed jobseeker. The objective of work supported with a pay subsidy is to improve the professional skills of the unemployed person and to enhance their opportunities for employment on the open labour market. The requirement for granting a pay subsidy is that the person recruited is considered to have a reduced capacity to work. The granting of a pay subsidy is decided upon on a case-by-case basis. The TE Office will assess whether the unemployed person's capacity to work is reduced:
due to deficiencies in skills and expertise
due to disability or illness
If the unemployed person has reached the age of 60 and has been unemployed continuously for at least 12 months directly preceding the decision to grant a pay subsidy, the subsidy can be granted even if the person has no deficiencies in skills and expertise.
Tax credit for domestic costs
When you purchase services for your home or a holiday home, you can deduct part of the expenses in your taxation in the form of tax credit for domestic costs.
You are eligible for the credit if you order and pay for, for example, the following types of work:
household or care work
house maintenance work
IT and communications equipment installation work.
The tax credit for domestic costs must be applied for personally. The work ordered and the compensation for work or wages and indirect wages must be reported in the pre-filled tax return form. The tax authority makes the deduction directly from tax and the person who ordered the work is given the credit in the form of a tax return.
Can I really be an employer?