Tasaistetä

Tasaistetä is a non-consideration payment made in Finland in certain situations where an income is already taxable. This type of payment is considered taxable and is reported in the income statement. Payments that are not considered taxable, such as child support and compensation for moving costs, are termed as non-taxable benefits in Finnish tax legislation.

Tasaistetä arises when an employer provides financial incentives or additional income without having any direct correlation to the employee's performance or work-related tasks. The purpose behind tasaistetä is generally to benefit low-income families, who may face significant household expenses. The allowance aims to mitigate this issue and supplement the recipient's income with tax-free benefits that can be utilized at their own discretion.

The allowance provided by the employer is treated differently by tax authorities. Typically, a portion of the allowance is applicable based on the recipient's income level and is converted into tax-free benefit. The conversion is, however, subject to specific constraints that may limit the immediate tax benefits of the tasaistetä if the recipient's taxable income preceding the allowance is satisfactory.

The specific guidelines for tasaistetä in Finland are laid out by the Tax Administration, outlining the eligibility, conditions, and allowable conversion rates that can affect the payments. Understanding the specific conditions and restrictions related to tasaistetä requires personal assessment based on the recipient's income level and household profile, which is usually managed by the recipient or sought from qualified financial advisors or tax professionals.