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Finland
Overview
Last reviewed - 10 January 2024Finland, a Nordic country in Northern Europe, is bordered by Sweden to the west, Norway to the north, and Russia to the east, while Estonia lies to its south across the Gulf of Finland. It is divided into five regions, with Helsinki as the capital. The official languages of Finland are Finnish and Swedish, and the currency is the euro (EUR).
Finland was initially a province, then a grand duchy under Sweden from the 12th to the 19th century, and later an autonomous grand duchy of Russia after 1809. It gained its complete independence in 1917. During World War II, Finland was able to successfully defend its freedom and resist invasions by the Soviet Union. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe.
Finland has a highly industrialised, largely free-market economy. Trade is important, with exports accounting for over one third of gross domestic product (GDP) in recent years. Finland is strongly competitive in manufacturing, principally the wood, metals, engineering, telecommunications, and electronics industries. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Forestry, an important export earner, provides a secondary occupation for the rural population.
A member of the European Union (EU) since 1995, Finland was the only Nordic country to join the Euro system at its initiation in January 1999. In the 21st century, the key features of Finland's modern welfare state are a high standard of education, equality promotion, and a national social security system.
PwC Finland has more than 1,200 professionals offering consulting, deals, tax, legal, audit, and other assurance services at over 10 locations.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
20 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
Within four months from the end of the month during which the accounting period ends. |
| CIT final payment due date |
Taxpayers may apply for amendments to advance taxes levied until tax assessment has been completed (within ten months from the end of the fiscal year). The due date for the final CIT payment is the 3rd day of the 2nd month after the tax assessment for the year has been completed. |
| CIT estimated payment due dates |
Advance tax payments for companies are collected in two or 12 instalments during the tax year. If the total amount to be paid is not more than EUR 2,000, the instalments are due in the third and the ninth month of the accounting period. If the total amount to be paid exceeds EUR 2,000, the instalments are due monthly (due date is 23rd of each month). Tax authorities may, without application, levy or increase advance taxes within two months from the end of the fiscal year. Decrease or abolishment of advance tax payments may be levied by the tax authorities (by or without taxpayer’s application) until tax assessment has been completed. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
Residents: Progressive tax rates up to approximately 55% Non-residents: 35% |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
The due date differs between individuals. The first deadline is in early April in year following the tax year and following three deadlines are in May in year following the tax year. |
| PIT final payment due date |
Without the obligation to pay residual tax interest by the end of January following the tax year and after that voluntarily or according to the due dates of assessed residual tax. |
| PIT estimated payment due dates |
Taxes are, as a basic rule, withheld through payroll processing in Finland and in connection with the salary payout. If the employer is not required to withhold the income taxes, then the Tax Administration assesses preliminary taxes to be payable on monthly basis. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
24 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
WHT rates on dividends, interest, and royalties for residents and non-residents vary on a case-by-case basis (as it is, e.g., dependent on a legal form of the payer and the recipient). See the Finland Corporate tax summary for more information. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. |
| Headline individual capital gains tax rate (%) |
30 (and 34 on income exceeding EUR 30,000 annually). |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
Tax rate depends on the value of the inheritance and the relationship between the beneficiary and the deceased. |
| Headline gift tax rate (%) |
Tax rate depends on the value of the gift and the relationship between the donee and the donor. |
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