Kouranutasoja

Kouranutasoja is a term used in the context of Finnish law and taxation. It refers to a social welfare scheme where an individual can offset their tax liability by paying a solidarity levy to the Social Insurance Institution of Finland (Kela). The amount of solidarity levy paid is subtracted from the individual's overall tax liability, thereby reducing their net tax payment.

The concept of kouranutasoja has been in place in Finland since the 1990s. The term itself is derived from the Finnish language, with "kou-ra" meaning "mixture of earnings" and ""asoja" referring to "levy" or "tax deduction." The solidarity levy is calculated based on an individual's income and is typically paid as a lump sum at the end of the tax year.

To qualify for kouranutasoja, an individual must meet certain criteria, including having a certain level of income and being employed or receiving certain types of social benefits. The amount of solidarity levy paid can be adjusted based on changes in an individual's income or family status.

The purpose of kouranutasoja is to provide a mechanism for low- and middle-income earners to reduce their tax burden, thereby promoting social welfare and reducing income inequality. The scheme is administered by the Kela, in collaboration with the Finnish Tax Administration. Overall, kouranutasoja is an important component of Finland's social welfare system, helping to mitigate the impact of taxation on low- and middle-income households.