Yritystulo

Yritystulo is the term used in Finland for corporate income tax, the levy on the profits of corporations and other entities that are resident in Finland or have a Finnish permanent establishment. The tax base is taxable income, defined by Finnish corporate tax rules as revenue from business activities minus deductible expenses, depreciation of assets, and other adjustments prescribed by law.

The standard rate applied to taxable income is 20 percent. In practice, the calculation can involve various deductions and adjustments, including ordinary business expenses and depreciation allowances. Losses from previous years may, in many circumstances, be carried forward to offset future profits, subject to statutory conditions. Tax incentives or special provisions may reduce the burden in specific cases, depending on current legislation and policy priorities.

Yritystulo applies to resident companies and to non-resident companies with a Finnish permanent establishment. Profits distributed as dividends or other forms of distributions can be subject to additional taxation at the shareholder level, and withholding taxes may apply to payments to non-residents. The system interacts with other taxes, such as value-added tax and payroll taxes, and with international tax rules to address cross-border activities.

Administration and compliance are handled by the Finnish Tax Administration. Companies typically file annual corporate tax returns, and tax payments are organized through prepayments based on expected profits, followed by a final settlement after the accounting period ends. The framework is subject to ongoing reforms and international cooperation aimed at ensuring alignment with global standards on corporate taxation.