Yhtiöverotus

Yhtiöverotus refers to the taxation of companies in Finland. It is governed by specific legislation and administered by the Finnish Tax Administration (Verohallinto). The primary tax levied on companies is the corporate income tax, or yhteisövero.

The corporate income tax rate in Finland has been relatively stable in recent years. This tax is levied on a company's taxable profit. Taxable profit is generally calculated by taking the company's revenue and subtracting deductible expenses. Various deductions and allowances are available, such as depreciation of assets, research and development expenses, and interest expenses, subject to certain limitations.

One key aspect of Finnish yhtiöverotus is the system of imputation credits. Historically, this system aimed to integrate corporate and shareholder taxation. However, the imputation credit system has been largely phased out and replaced by a dividend withholding tax. Dividends paid by Finnish companies to resident shareholders are typically subject to a dividend withholding tax. For dividends paid to individuals, this is often at a flat rate, while dividends paid to other companies may be taxed differently depending on the ownership percentage.

Losses incurred by a company can generally be carried forward to be deducted from taxable profits in future years. There are rules regarding the number of years losses can be carried forward. Transfer pricing rules are also important in yhtiöverotus, ensuring that transactions between related parties are conducted at arm's length prices to prevent artificial profit shifting. International aspects of yhtiöverotus are significant, with Finland having a network of double taxation treaties to avoid taxing the same income in more than one country.