Yhteisöveron

Yhteisöveron, or corporate income tax, is Finland’s tax on the profits of companies and other legal entities. The tax applies to resident companies on worldwide income and to non-residents on Finnish-source income through a Finnish permanent establishment. The general corporate tax rate is 20 percent. The tax base is the accounting profit adjusted for tax purposes, with deductions for ordinary business expenses and permitted depreciation. Some costs are non-deductible, and various tax incentives or exemptions may apply in specific circumstances.

Losses from previous years can typically be carried forward to offset future profits under Finnish rules, subject to time limits and anti-avoidance provisions. The tax base may be adjusted for international arrangements such as transfer pricing rules, to ensure profits are taxed where value is created. In some cases, capital gains and dividends may receive special treatment.

Taxes are administered by the Finnish Tax Administration, with the company filing an annual corporate income tax return and paying the tax due according to a schedule set by the administration. For non-residents, withholding taxes may apply to certain payments to foreign shareholders, subject to domestic law and tax treaties, reducing or eliminating double taxation.

Finland’s corporate tax system interacts with EU and international standards, including transfer-pricing guidelines and anti-avoidance measures. Companies may also be eligible for reliefs or incentives, such as deductions for research and development expenditures, subject to current legislation.