Ennakonpidätysprosentit

Ennakonpidätysprosentit refer to the tax withholding rates applied in Finland. These percentages are determined by the Finnish Tax Administration (Verohallinto) and are used to collect income tax, social security contributions, and other taxes from an individual's earnings before they receive their net pay. Employers are responsible for withholding these amounts from their employees' salaries and remitting them to the tax authorities.

The specific ennakonpidätysprosentti for an individual is calculated based on their estimated annual income and the deductions they are eligible for. This is typically determined through a tax card issued by the Finnish Tax Administration. Individuals can also request changes to their withholding rates if their income or deductions change significantly during the year. This ensures that the correct amount of tax is paid throughout the year, avoiding large tax bills or refunds at the end of the tax period.

There are different ennakonpidätysprosentit for various types of income, such as earned income, capital income, and pension income. Social security contributions, including unemployment insurance and pension contributions, are also deducted based on their respective percentages, which are set annually. These percentages are subject to change based on government policy and economic conditions. Understanding these percentages is crucial for both employees and employers in managing their tax obligations in Finland.