Yhteisöverona

Yhteisövero, often translated as corporate tax or community tax, is a tax levied on the profits of legal entities, primarily companies and foundations, in Finland. It is a significant source of revenue for the Finnish government and municipalities. The tax rate is applied to the taxable net profit of the entity. For most companies, the standard yhteisövero rate is 20%. Certain non-profit organizations and foundations may be eligible for exemptions or a reduced tax rate under specific conditions outlined in Finnish tax law.

The tax base for yhteisövero is calculated by deducting deductible expenses from the entity's revenue. Deductible expenses include operational costs, depreciation, interest expenses, and certain other expenditures. The Finnish Tax Administration (Verohallinto) is responsible for the assessment and collection of yhteisövero. Companies are required to file annual tax returns detailing their income and expenses. The rules and regulations concerning yhteisövero are primarily governed by the Finnish Corporate Tax Act (Laki yhteisöjen tuloverosta). International aspects of corporate taxation, including transfer pricing and double taxation agreements, also play a role in the application of yhteisövero for multinational corporations operating in Finland.