Business taxation in Finland depends on the type of company. The amount of tax is formed based on the company’s profit and its net assets. If the company incurs a loss, it will be deducted from the profit of the coming financial years before calculating the taxes for those years. Net assets are calculated by subtracting the company’s loans from its assets. The business type only matters in terms of the difference if the company is achieving a positive result even after wages.
Some of the earnings of a private entrepreneur are taxed as capital income, some as earned income. The proportion of the capital income depends on the net assets. Capital income taxation can also be requested for a certain proportion. You should discuss with your accounting firm when this would be advisable.
Limited partnership and general partnership
The result of limited and general partnerships is taxed by dividing the profit and net assets between the partners. For example, if a spouse is a silent partner in a limited partnership and receives compensation, this compensation will be taxed as capital income.
Limited liability company
Limited liability companies pay corporate tax. You can check the amount of corporate tax and read more about the taxation of limited liability companies and their shareholders in the vero.fi service.
Value-added tax must, almost without exception, be paid for the sale of goods and services through business operations in Finland. Companies need to pay value-added tax when the turnover exceeds € 10,000 during the accounting period. If the turnover is between €10,000 and €30,000 you can get tax relief. The new limits apply to accounting periods starting 1.1.2016 or later.
Excise duties are indirect duties levied on the consumption or use of certain products.
Products subject to excise duties include:
electricity and fuels
sweets, ice cream and soft drinks
alcoholic beverages and beverage containers
Excise duties are collected on products manufactured in Finland, as well as those imported into Finland. The taxpayer is the commercial importer or manufacturer of the products, or any other operator who is in possession of untaxed products or takes part in their possession.
More information: Are your operations liable for excise duties?
You can request an advance ruling from the Tax Administration for most matters regarding taxation. They are binding rulings regarding how the Tax Administration will handle individual tax issues.