Kyselyvähennys

Kyselyvähennys refers to a specific type of tax deduction available in Finland, primarily for individuals. It is a deduction related to the expenses incurred for acquiring certain services from businesses registered in Finland. The purpose of kyselyvähennys is to encourage spending on domestic services and to combat the grey economy.

The deduction applies to specific types of household services, such as renovations, domestic help, and certain maintenance work. The services must be performed by a company that is registered for value-added tax in Finland. The individual claiming the deduction must be a private person, and the service must be provided in their permanent or temporary residence.

The amount of the deduction is a percentage of the labor costs of the eligible services, up to a certain annual maximum. Both the taxpayer and their spouse can claim the deduction, but the total deduction is capped for the household. Detailed regulations regarding eligible services, maximum amounts, and application procedures are provided annually by the Finnish Tax Administration (Verohallinto).

To claim the kyselyvähennys, individuals need to have proper documentation, such as invoices and proof of payment, from the service provider. These details are then reported in the annual tax return. The Tax Administration automatically considers these deductions when calculating the final tax liability. It's important to note that the specific rules and percentages can change, so consulting the latest guidelines from the Finnish Tax Administration is recommended.