Lapsivähennys

Lapsivähennys refers to a tax deduction available in Finland that reduces a taxpayer's taxable income based on the number of children they have. This deduction aims to ease the financial burden of raising children.

To be eligible for lapsivähennys, an individual must have a child residing in their household who is under 18 years old. The deduction is typically applied automatically by the Finnish Tax Administration (Verohallinto) based on the information it has on file regarding family relationships. However, in some cases, taxpayers may need to actively claim the deduction if the information is not automatically recognized.

The amount of the deduction varies and is often tiered, meaning the deduction may be larger for the first child and smaller for subsequent children, or it might be a fixed amount per child. The specific amounts and rules are subject to change based on government budgets and tax legislation.

Lapsivähennys directly impacts the final income tax payable by an individual. By reducing the taxable income, it effectively lowers the overall tax liability. This deduction is one of several measures in the Finnish tax system designed to support families and encourage child-rearing. It is important for individuals to consult the official publications of the Finnish Tax Administration or seek professional advice for the most current and precise information regarding eligibility and amounts.